Michael's Bakery Had $236,400 in Net Fixed Assets at the Beginning

question 1

Multiple Choice

Michael's Bakery had $236,400 in net fixed assets at the beginning of the year.During the year, the company purchased $53,200 in new equipment.It also sold, at a price of $22,000, some old equipment that had a book value of $5,900.The depreciation expense for the year was $13,400.What is the net fixed asset balance at the end of the year?

• A)$260,000
• B)$283,700
• C)$276,200
• D)$270,300
• E)$289,600

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus the cost of goods sold.

Beginning Inventory

The value of all products, goods, and materials in stock at the start of an accounting period.

LIFO

"Last In, First Out," an inventory valuation method where the latest items added to the inventory are the first to be sold.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated using beginning inventory, purchases, and cost of goods sold.