Armored Metal Co. reported \(\$ 975,600\) for equipment and \(\$ 600,000\) for accumulated depreciation-equipment on its balance sheet.

Does this mean

(a) that the replacement cost of the equipment is \(\$ 975,600\) and

(b) that \(\$ 600,000\) is set aside in a special fund for the replacement of the equipment? Explain.

objs. 4,5