ANDERS COMPANY Comparative Balance Sheets 2017 2016 Plant assets Equipment Accum

Question

ANDERS COMPANY Comparative Balance Sheets 2017 2016 Plant assets Equipment Accum. Depr.-Equipment Equipment, net Buildings Accum. Depr.-Buildings Buildings, net s 200,000 S 290,e00 (108,000) (218,690) $ 92,000 72,000 400,000 420,808 (112,000) (297,000) S 288,000 123,000 QS 16-5 Indirect: Computing investing cash flows LO P2 During 2017, equipment with a book value of $44,000 and an original cost of $230,000 was sold at a loss of $3,800 1. How much cash did Anders receive from the sale of equipment? received from the sale of equipment 40.200 2. How much depreciation expense wes recordec or equipment during k Prev

Explanation / Answer

1.

Cash received from the sale of equipment = Book value - Loss on sale

= 44,000 - 3,800

= 40,200

2.

Accumulated depreciation on equipment sold = Original cost - Book value

= 230,000 - 44,000

= 186,000

Accumulated depreciation on equipment after sale = 218,000 - 186,000 = 32,000

Accumulated depreciation on 2017 Balance sheet = 108,000

Depreciation expense recorded during 2017 = 108,000 - 32,000 = 76,000

3.

Cost of equipment after sale = 290,000 - 230,000 = 60,000

Cost of equipment on 2017 Balance sheet = 200,000

Purchase of equipment = 200,000 - 60,000 = 140,000

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.