At the Beginning of the Year, AAA-1 Towing Owns Trucks

question 26

Multiple Choice

At the beginning of the year, AAA-1 Towing owns trucks and buildings of a total value of $1 million. During the year, it invests $250,000 to replace towing trucks worth $230,000 destroyed in a flood and to cover $50,000 worth of depreciation. AAA-1 Towing's capital stock at the end of the year was

• A) $1,020,000.
• B) $1,250,000.
• C) $1,280,000.
• D) $950,000.
• E) $970,000.

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