The plant assets section of the comparative balance sheets of Anders Company is

Question

The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANY Comparative Balance Sheets 2016 2015 Plant assets Equipment Accum. Depr Equipment Equipment, net Buildings Accum. Depr- Buildings Buildings, net s 190,000 280,000 (214,000) 86000 66.000 410,000 (106,000) (291,000 S 284,000 119,000 104,000 390,000 Refer to the balance sheet data above from Anders Company. During 2016, equipment with a book value of $42,000 and an original cost of $220,000 was sold at a loss of $3,400 1. How much cash did Anders receive from the sale of equipment? ash received from the sale of equipment S 38,600 2. How much depreciation expense was recorded on equipment during 2016? n expense 66,000 3. What was the cost of new equipment purchased by Anders during 20161? of equipment124,000

Explanation / Answer

1. cash received from sale of equipment = $42,000 - $3,400 => $38,600.

2.depreciation on equipment during 2016 =>$68,000.

3.cost of equipment purchased during 2016 =>$130,000.

accumulated depreciation till december 31,2015 $214,000 less: depreciation on sold off machine ($220,000- 42,000) ($178,000) balance in accumulated deprecation (214,000 -178,000) $36,000 actual balance as at end of 2016 $104,000 depreciation charged during 2016 (104,000 - 36,000) $68,000

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