Holly,IncHas a Building That Originally Cost $562,500

question 26

Multiple Choice

Holly,Inc.has a building that originally cost $562,500.Holly expects to be able to sell the facility for $160,500 at the end of its useful life.The balance of the related Accumulated Depreciation account is $387,000.The depreciable cost of the facility is:

• A)$175,500.
• B)$226,500.
• C)$402,000.
• D)$160,500.

---

Definitions:

Loan

Borrowed money that is expected to be paid back with interest.

Variable Cost

Expenses that vary directly with production output.

Mud Statues

Sculptures made from mud or clay, often created as artistic or cultural items.

Loan

A borrowed amount of funds that needs to be returned along with additional interest charges.