The T-accounts for Equipment and the related Accumulated Depreciation—Equip. for

Question

The T-accounts for Equipment and the related Accumulated Depreciation—Equip. for Coldsmith Company at the end of 2014 are shown here.

Equipment

101,920

28,028

52,998

126,890

Accum. Depr.—Equip.

6,497

56,693

15,288

65,484

In addition, Coldsmith Company’s income statement reported a loss on the disposal of plant assets of $4,459. What amount was reported on the statement of cash flows as “cash flow from sale of equipment”?

$

Equipment

Beg. bal.

101,920

Disposals

28,028

Acquisitions

52,998

End. bal.

126,890

Accum. Depr.—Equip.

Disposals

6,497

Beg. bal.

56,693

Depr. exp.

15,288

End. bal.

65,484

Explanation / Answer

Calculate cash flow from sale of equipment :

Cash flow from sale of equipment is $17072

Cost of disposal equipment 28028 Less: Accumlated dep on disposal equipment (6497) Book value of equipment 21531 Less: Loss on disposal of equipment (4459) Cash flow from sale of equipment 17072

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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