Question

Beginning Furniture and Fixtures = $3,650. Ending Furniture and Fixtures = $5,600. Beginning Accumulated Depreciation = $450. Ending Accumulated Depreciation = $1,120. Furniture and Fixtures with an original cost of $1,000 and accumulated depreciation of $300 were sold for $900 this year.

1.What are furniture and fixture purchases this year?

A. $1,950.

B. $2,950.

C. $3,950.

D. $4,950.

E. None of the above.

2. What is accrual basis depreciation expense?

A. $670.

B. $970.

C. $1,270.

D. $1,570.

E. None of the above.

Answer 1