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

question 89

Multiple Choice

Pitt Metal 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 $4,700. What is the net fixed asset balance at the end of the year?

• A) $76,400
• B) $78,800
• C) $80,000
• D) $88,200
• E) $89,400

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Definitions:

Chesapeake Affair

A significant diplomatic conflict in 1807 between the United Kingdom and the United States, arising from the British navy's attack on the American ship USS Chesapeake.

Embargo Act

Historical legislation aimed at prohibiting trade between a specific country and others, often used as a tool of foreign policy.

American Merchant

A term referring to individuals or businesses engaged in the trade or commerce of goods, services, or commodities in the United States.

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A factory for the production of fabrics, where raw fibers like cotton and wool are spun, woven, and dyed.