At December 31, 2021, the following existed on the records of Chai Co..:  Accumulated Depreciation: $3,970,000 Fixed Assets: $8,600,000   During the year ended September 30,2022, fixed assets with a written down value of $370,000 was sold for $490,000. The pant had originally cost $800,000. Fixed assets purchased during the year cost $1,800,000. It is the company's policy to charge a full year's depreciation in the year of acquisition of an asset and none in the year of sale. Chogiwa uses 10% rate on a straight-line basis.    Compute for the net amount (book value) of fixed assets should appear in the statement of financial position as of September 30, 2022.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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At December 31, 2021, the following existed on the records of Chai Co..: 

  • Accumulated Depreciation: $3,970,000
  • Fixed Assets: $8,600,000

 

During the year ended September 30,2022, fixed assets with a written down value of $370,000 was sold for $490,000. The pant had originally cost $800,000. Fixed assets purchased during the year cost $1,800,000. It is the company's policy to charge a full year's depreciation in the year of acquisition of an asset and none in the year of sale. Chogiwa uses 10% rate on a straight-line basis. 

 

Compute for the net amount (book value) of fixed assets should appear in the statement of financial position as of September 30, 2022.

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