Answer:
The cost balance on 31 December 2018 is $518,000 while that of accumulated depreciation is $126,400
Explanation:
The balance of fixed assets is computed as
Opening balance - accumulated depreciation - depreciation + Addition - Disposal
Hence given that on December 31, 2017, Calgary Industries reports equipment of $470,000 and accumulated depreciation of $94,000. During 2018, the company plans to purchase additional equipment costing $100,000 and expects depreciation expense of $40,000, Additionally, it plans to dispose of equipment that originally cost $52,000 and had accumulated depreciation of $7,600 the balance then
= $470,000 + $100,000 - $52,000
= $518,000
The accumulated depreciation
= $94,000 + $40,000 - $7,600
= $126,400
