Tri-City Ironworks Co. reported $44,500,000 for equipment and $29,800,000 for accumulated depreciation-equipment on its balance sheet. Does

Question:

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