Based on the Following Information, What Is the Net Amount

question 2

Multiple Choice

Based on the following information, what is the net amount that this equipment should be reported at on BAC's balance sheet at December 31, 2021? $$\begin{array} { | l | r | } \hline \text { Cost } & \$ 500,000 \\\hline \text { Accumulated depreciation } & 300,000 \\\hline \text { Value in use (sum of discounted cash flows) } & 220,000 \\\hline \text { Fair value } & 240,000 \\\hline \text { Disposal costs } & 10,000 \\\hline\end{array}$$

• A)$200,000
• B)$220,000
• C)$230,000
• D)$240,000

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Definitions:

Accounts Receivable Journal

A ledger used to record sales transactions where payment is to be received in the future, detailing each customer’s purchase on credit.

Purchases Journal

A specialized accounting journal used to record the purchasing of goods and services on credit.

Promissory Note

A financial instrument in which the writer promises in writing to pay a determinate sum of money to the payee under specific terms.

Revenue Journal

A specialized accounting journal used to record all incoming revenues and sales transactions of a company.