A company had equipment worth $50 million on 1 January. During the year, they purchased equipment for $10 million. On 31 December, the equipment account showed $40 million. All figures are shown at cost, before depreciation. The amount of equipment sold during the end of the year, at cost, would be closest to: $0 $20 million $40 million

Beginning equipment balance = 50 Plus equipment purchased = 10 Less ending equipment balance = (40) Historic cost of equipment sold = 20

Question Of The Week - Financial Reporting And Analysis (4) - CFA Level 1

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