Use the following information for questions 63 through 67.
Financial statements for Kiner Company are given below: Total assets on the balance sheet at December 31, 2015 are $4,432,000. Accumulated deprecia-tion on the equipment sold was $224,000.
-When the equipment was sold, the Buildings and Equipment account received a credit of
A) $192,000.
B) $416,000.
C) $320,000.
D) $224,000.

Question

Use the following information for questions 63 through 67.
Financial statements for Kiner Company are given below:  Total assets on the balance sheet at December 31, 2015 are $4,432,000. Accumulated deprecia-tion on the equipment sold was $224,000.
-When the equipment was sold, the Buildings and Equipment account received a credit of
A) $192,000. 
B) $416,000. 
C) $320,000. 
D) $224,000.

Quizplus · Accepted Answer

When equipment is sold, the Buildings and Equipment account is credited for the book value of the equipment being disposed of. The correct amount credited reflects the book value of the equipment at the time of sale, which in this scenario is $320,000.

Use the Following Information for Questions 63 Through 67