Answer:
$9,950
Explanation:
The amount of equipment shall be determined through accounting equation which is given as follows:
Total Assets=Total liabilities+Total equity
Total assets=Current+Non current assets
Current assets+Non current assets=Total liabilities+Total equity
Non current assets=Cost of land+Cost of equipment-accumulated depreciation on equipment
Current assets+Cost of land+Cost of equipment-accumulated depreciation on equipment=Total liabilities+Total equity
Applying given data in the question to the above equation
$19,800+$15,000+Cost of equipment-$1,550=$44,750
$33,250+Cost of equipment=$44,750
Cost of equipment=$44,750-$33,250=$11,500
Amount of equipment on balance sheet=$11,500-$1,550=$9,950
