MCQs > Finance & Management > Accounting Cash Flow > XYZ Company reported the following information on its balance sheet: 01/01/07 Building: $800,000 Accumulated Depreciation: $200,000 12/31/07 Building: $785,000 Accumulated Depreciation: $225,000 In 2007, the company also purchased a building at a cost of $100,000. Considering the above data, did the company sell any building during the year, and if so, what was its original cost?

Accounting Cash Flow MCQs

XYZ Company reported the following information on its balance sheet:

01/01/07 Building: $800,000 Accumulated Depreciation: $200,000

12/31/07 Building: $785,000 Accumulated Depreciation: $225,000

In 2007, the company also purchased a building at a cost of $100,000.

Considering the above data, did the company sell any building during the year, and if so, what was its original cost?

Answer

Correct Answer: Yes, and its original cost was $115,000.

Explanation:

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