Early Works Had $87,600 in Net Fixed Assets at the Beginning

question 32

Multiple Choice

Early Works had $87,600 in net fixed assets at the beginning of the year.During the year,the company purchased $6,400 in new equipment.It also sold,at a price of $2,300,some old equipment with a book value of $1,100.The depreciation expense for the year was $3,700.What is the net fixed asset balance at the end of the year?

• A)$76,400
• B)$78,800
• C)$80,000
• D)$87,200
• E)$89,400

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Definitions:

Joint Ventures

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or project.

Copyright

Legal protection provided to the creators of original works of authorship, including literary, dramatic, musical, and certain other intellectual works.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership interest.

Research and Development

A series of creative and systematic activities undertaken to increase the stock of knowledge and the use of this knowledge to devise new applications, products, or processes.