Equipment with an Original Cost of $78,000 Has a Fair

question 26

Multiple Choice

Equipment with an original cost of $78,000 has a fair market value of $68,000, current replacement cost of $82,000, and a depreciated value of $74,000 on December 31, 2018. At what amount would net equipment be measured on the December 31, 2018 balance sheet?

• A)$76,000
• B)$74,000
• C)$82,000
• D)$78,000

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Definitions:

Balance Sheet

An exposition on a company's assets, its financial responsibilities, and the equity owned by shareholders, documented at a fixed point in time.

Total Revenue

The overall amount of money generated by a company from its business activities, before any expenses are subtracted.

Total Expenses

The sum of all costs and expenses incurred by a business during a given period, including operating and non-operating expenses.

Net Income

Net income is the profit a company makes after deducting all its costs and expenses from its total revenue.