Royal Plastics Provides the Following Information About Its Moulding Machinery

question 34

Multiple Choice

Royal Plastics provides the following information about its moulding machinery: $$\begin{array} { l r } \text { Opening balance of machinery account } & \$ 500,000 \\\text { Closing balance of machinery account } & \$ 650,000 \\\text { Depreciation expense for the year } & \$ 50,000 \\\text { Depreciation charged on machinery sold } & \$ 130,000 \\\text { Profit on sale of machinery } & \$ 20,000 \\\text { Carrying value of machinery } & \$ 90,000\end{array}$$ What is the total cost of machinery purchased during the year?

• A)$370,000.
• B)$200,000.
• C)$280,000.
• D)$300,000.

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Definitions:

Forges

A process of forming or shaping metal objects using localized compressive forces, or to illegally copy something, like a document, with the intent to deceive.

Negotiates

The process of discussing something to reach an agreement, especially in a business or political context.

Sue

To initiate legal proceedings against a person or entity.

Loan

A sum of money borrowed from a lender that is expected to be paid back with interest.