The following beginning and ending balances were drawn from the records of Grimes Company: $$\begin{array} { l r r }
& \text { Begirning } & \text { Ending } \
\text { Equipment } & \$ 1,400 & \$ 1,100 \
\text { Accurnulated Depreciation } & \$ 700 & \$ 400
\end{array}$$
If Grimes Company sold equipment that had an original cost of $600 and accumulated depreciation of $300 for $250,how much did Grimes pay for new equipment?
A) $255
B) $300
C) $200
D) $550

Question

The following beginning and ending balances were drawn from the records of Grimes Company: $$\begin{array} { l r r } 
& \text { Begirning } & \text { Ending } \
\text { Equipment } & \$ 1,400 & \$ 1,100 \
\text { Accurnulated Depreciation } & \$ 700 & \$ 400
\end{array}$$ 
If Grimes Company sold equipment that had an original cost of $600 and accumulated depreciation of $300 for $250,how much did Grimes pay for new equipment?
A) $255
B) $300
C) $200
D) $550

Quizplus · Accepted Answer

The Answer is B

The Following Beginning and Ending Balances Were Drawn from the Records