Introduction: Pre-test
HARVARD BUSINESS
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14. The next question deals with the December 31, 2019 Balance Sheet of Horan Industries.
Horan Industries
Balance Sheet as of December 31, 2019
Assets
Liabilities
Current Assets
Current Liabilities
Cash
$65,000
Accounts Payable
$45,000
Inventory
40,000
Notes Payable
55,000
Accounts Receivables
20,000
Total Current Liabilities
$100,000
Total Current Assets
$125,000
Non-current Liabilities
Non-current Assets
Debt
75,000
Plant and Equipment (Net)
175,000
Owner's Equity
Patents (Net)
25,000
Common Stock
110,000
Total Assets
$325,000
Retained Earnings
40,000
Total Liabilities and Owner's Equity
$325,000
Horan began 2019 with the following non-current asset balances: Plant and equipment (net) $185,000; Patents
$27,000. No long-term assets were purchased or sold during the year. How much amortization and depreciation
expense did Horan record during 2019?
$10,000
$11,000
$12,000
It cannot be determined with the information given.
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