Xi Co Provides You with the Following Information About Its $\quad \$ 300,000$

question 57

Multiple Choice

Xi Co provides you with the following information about its equipment account: Opening balance of equipment $\quad \$ 300,000$
Closing balance of equipment $\quad \$ 550,000$ If machinery that originally cost $100,000 was sold during the year, what was the value of new equipment purchased?

• A)$250,000.
• B)$350,000.
• C)$550,000.
• D)$150,000.

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Definitions:

Negotiates

The process by which parties come together to try and reach an agreement on a matter, often involving discussion and compromise.

Fictitious Payee Rule

A legal principle that holds a drawer of a check responsible when funds are obtained by fraud, if the drawer fails to exercise caution in issuing the check.

Immediate Loss

Financial damage or cost incurred directly as a result of an event, action, or decision, without any delay.

Forged Instruments

Documents that are illegally altered or created to deceive or commit fraud.