Question

Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANY Comparative Balance Sheets 2019 2018 Plant assets Equipment $ 245,000 $ 335,000 Accumulated depreciation—Equipment (126,000 ) (236,000 ) Equipment, net $ 119,000 $ 99,000 Buildings $ 445,000 $ 465,000 Accumulated depreciation—Buildings (139,000 ) (324,000 ) Buildings, net $ 306,000 $ 141,000 QS 12-10 Computing investing cash flows LO P3 During 2019, equipment with a book value of $53,000 and an original cost of $275,000 was sold at a loss of $5,600. 1. How much cash did Anders receive from the sale of equipment? 2. How much depreciation expense was recorded on equipment during 2019? 3. What was the cost of new equipment purchased by Anders during 2019? Next Visit question mapQuestion 5 linked to 6 of 7 Total 5 6 of 7 Prev

Answer 1

Answer:

1. How much cash did Anders receive from the sale of equipment?

$ 47,400    

How much depreciation expense was recorded on equipment during 2019

$ 57,000

What was the cost of new equipment purchased by Anders during 2019?

$ 185,000

Explanation:

Book Value -$ 53,000

Sale Value $ 47,400

Sold Loss -$ 5,600

Accum. Depreciation Eq. 2018 $ 236,000

Accum. Depreciation Eq. 2019 -$ 126,000

Book Value                                  -$ 53,000

REAL Depreciation During 2019 $ 57,000

Property and Equipment 2018 -$ 335,000

Property and Equipment 2019 $ 245,000

Original Cost $ 275,000

REAL Depreciation During 2019 $ 185,000