At What Amount Should the Equipment (Net of Depreciation) Be

question 16

Multiple Choice

At what amount should the equipment (net of depreciation) be included in the consolidated balance sheet dated December 31, 2018?

• A) $110,000.
• B) $105,000.
• C) $100,000.
• D) $ 90,000.
• E) $ 60,000.

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Definitions:

Return on Total Assets

Return on Total Assets (ROTA) is a financial ratio that measures a company's net income relative to its total assets, indicating how efficiently the company is using its assets to generate profit.

Company Information

Pertains to data and facts about a company, including its operations, financial condition, industry sector, and management strategies.

Current Year

The ongoing calendar year or fiscal year in which a company or individual is reporting or analyzing financial information.

Debt to Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by its shareholders' equity.