Reference no: EM132643706

Question - Alamo Freeze Corporation starts in business on October 1, and here are some of its transactions during the next three months:

Oct. 1 - Paid one year's rent of $12,000.

Oct. 1 - Bought equipment for $18,000 cash. The equipment is expected to last 6 years and then be worthless.

Oct. 1 - Bought inventory for $12,000 on account.

Nov. 1 - Bought land for $21,000 cash.

Nov. 14 - Sold $2,000 of inventory for $9,500 cash.

Dec. 10 - Sold $3,500 of inventory for $18,000 on account.

Dec. 20 - Sold one-half of land for $12,000 in cash.

Dec. 31 - Paid a dividend of $2,000.

Required - Compute Alamo Freeze's total net fixed assets at December 31, 2020?

a. $28,500

b. $27,750

c. $17,250

d. $38,250

e. None of the above