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Financial Accounting

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Purchase of New PP&E

FINACT-KSGLEC

Assuming the same set of facts from above, except that Gilson then used the proceeds from the sale along with an additional \$100,000 to purchase a new more efficient piece of equipment for use in its operations.

(I): What would be the balance (in \$) in the Equipment account just after the purchase of the new equipment?

(II): What would be the balance (in \$) in the Accumulated Depreciation account just after the purchase of the new equipment?