Nature of depreciation OBJ. 2 Tri-City Ironworks Co. reported $44,500,000 for equipment and $29,800,000 for accumulated depreciationequipment

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Nature of depreciation OBJ. 2 Tri-City Ironworks Co. reported $44,500,000 for equipment and $29,800,000 for accumulated depreciation—equipment on its balance sheet.

Does this mean

(a) that the replacement cost of the equipment is $44,500,000 and

(b) that $29,800,000 is set aside in a special fund for the replacement of the equipment? Explain.

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Financial And Managerial Accounting

ISBN: 9781305267831,9781305267848

13th Edition

Authors: Carl S. Warren , James M. Reeve , Jonathan Duchac

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