[The Following Information Applies to the Questions Displayed Below

question 154

Multiple Choice

[The following information applies to the questions displayed below.]
An analysis of changes in selected balance sheet accounts of Hierarchy Corporation shows the following for the current year:
Hierarchy's income statement for the current year includes a $9,600 gain on disposal of plant assets.All payments and proceeds relating to purchase or sale of plant assets were in cash.
-The amount of cash paid by Hierarchy to acquire plant assets during the current year was:

• A)$252,000.
• B)$504,000.
• C)$724,000.
• D)$768,000.

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Definitions:

Specific Performance

A legal remedy requiring a party to fulfill their exact obligations under a contract, rather than simply providing monetary damages for failure to do so.

Lien

A legal right or claim against a property by a creditor to ensure the payment of a debt.

Rescission

The revocation of a contract or agreement.

Damages

Monetary compensation required to be paid as a result of loss or injury due to a breach of contract or a tort.