Maritime Marine Services Selected data from the financial statements for the yea

Question

Maritime Marine Services

Selected data from the financial statements for the years ended December 31, 2014 and 2013, are presented below:

The following additional information was obtained from the company's records:

Refer to Maritime Marine Services. What was the cost of the property, plant and equipment which was disposed of during 2014 (in millions)?

$

Maritime Marine Services

Selected data from the financial statements for the years ended December 31, 2014 and 2013, are presented below:

(In millions) 2014 2013 Property, plant and equipment $14,100 $12,200 Accumulated depreciation 4,900 4,700 Investments 450 240 Short-term debt 55 57 Long-term debt 1,500 1,200 Common stock 597 567 Treasury--common stock (21) (21) Retained earnings 3,522 3,426 Net income 770 713

The following additional information was obtained from the company's records:

1. Cash additions to property, plant, and equipment during 2014 were $2,300. An additional $250 of plant assets were acquired through debt in a noncash transaction. Depreciation expense for 2014 was $400. Gains on disposals of property, plant and equipment during 2014 were $40. 2. The cash proceeds from the sale of investments in 2014 was $120. There was a $30 gain on the sale of the investments. 3. Proceeds from long-term debt issued during 2014 was $200. 4. The issuance of common stock totaled $30 in 2014.

Explanation / Answer

Cost Property, plant and equipment 2013             = $12,200

Add: Cash additions during 2014                                = $2,300

Add: Non cash additions in 2014                                = $250

Cost Property, plant and equipment 2014             = 14,100

Cost Property, plant and equipment disposed during 2014           = $650 millions

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