Use the Following Information for Questions 61 and 62 -Equipment Purchased During 2015 Was
A) $840,000

question 24

Multiple Choice

Use the following information for questions 61 and 62.
Equipment that cost $525,000 and had a book value of $234,000 was sold for $270,000. Data from the comparative balance sheets are: $\begin{array}{lrr}&12 / 31 / 15&12 / 31 / 14\\\text { Equipment } & \$ 3,240,000 & \$ 2,925,000 \\\text { Accumulated Depreciation } & 990,000 & 855,000\end{array}$
-Equipment purchased during 2015 was

• A) $840,000.
• B) $525,000.
• C) $315,000.
• D) $549,000.

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Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and profit over a specific period, demonstrating the company's financial performance.

Period Cost

Expenses that are not directly tied to the production process and are charged to the period in which they are incurred.

Manufacturing Costs

Expenses related to producing goods, encompassing direct materials, direct labor, and manufacturing overhead, necessary for calculating the cost of goods sold.

Cost of Goods Manufactured

The total production cost of goods completed during a specific accounting period, including labor, material, and overhead costs.