Brief Exercise 12-7 The T-accounts for Equipment and the related Accumulated Dep

ID: 2438544 • Letter: B

Question

Brief Exercise 12-7 The T-accounts for Equipment and the related Accumulated Depreciation-Equipment for Sunland Company at the end of 2017 are shown here. Equipment 142,400 Disposals Beg. bal Acquisitions End. bal. 39,160 177,288 Accum. Depr.-Equipment Disposals 9,078 Beg. bal. Depr. exp. End. bal. 79,210 21,360 91,492 In addition, Sunland Company's income statement reported a loss on the disposal of plant assets of $6,230. What amount was reported on the statement of cash flows as "cash flow from sale of equipment ? (Show amounts that decrease cash flow with either a Cash flow from sale of equipment Click if you would like to Show Work for this question: Open Show Work signe.g-15 O or in Parenti esise.g (1,00)

Explanation / Answer

Calculation of Cash flow from sale of Equipment

(A)

Cost of Equipment sold

$ 39,160.00

(B)

Accumulated depreciation on asset Sold

$ 9,078.00

(C=A-B)

Book value of asset

$ 30,082.00

(D)

Less: Loss on disposal

$ 6,230.00

(E = C-D)

Cash flow from sale of Equipment

$ 23,852.00

Answer

Cash flow from sale of Equipment $23852.00