Test: CPA Financial Accounting and Reporting (FAR)

1.

Florax Company begins Year 2 with $8,000 in its machinery & equipment account and $1,500 in related accumulated depreciation. During Year 2, Florax bought $4,000 in additional equipment and recorded total depreciation expense for the year of $800. What amount will Florax report as net machinery & equipment in its Year 2 balance sheet

$12,000

$12,000

$9,700

$14,300

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