The Following Beginning and Ending Balances Were Drawn from the Records

The following beginning and ending balances were drawn from the records of Grimes Company: $$\begin{array} { l r r } & \text { Begirning } & \text { Ending } \\\text { Equipment } & \$ 1,400 & \$ 1,100 \\\text { Accurnulated Depreciation } & \$ 700 & \$ 400\end{array}$$
If Grimes Company sold equipment that had an original cost of $600 and accumulated depreciation of $300 for $250,how much did Grimes pay for new equipment?

A) $255
B) $300
C) $200
D) $550

Correct Answer:

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