CFA Latest CFA Level 1 Discussions Question of the Week – Financial Reporting and Analysis

Question of the Week – Financial Reporting and Analysis

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    • AdaptPrep
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      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
    • AdaptPrep
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      Beginning equipment balance = 50

      Plus equipment purchased = 10

      Less ending equipment balance =
      (40)

      Historic cost of equipment sold =
      20

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