12.4 Preparing the Financial Budgets

Pipers Tooling Shops cash budget for 2022 shows a planned purchase of new machinery costing $175,000. Pipers 2022 manufacturing overhead budget shows annual depreciation on machinery of $10,174. Piper also owns office equipment that cost $52,000 with depreciation expected to be $6,595 in 2022. Pipers December 31, 2021, balance sheet reported the machinery net of accumulated depreciation at $245,000. Calculate the amount of net machinery and equipment that would be reported on the budgeted balance sheet for December 31, 2022.

Select answer from the options below

$455,231

$351,231

$420,231

$403,231