Required information be silant assets section of the comparetive balance shets o
ID: 2526904 • Letter: R
Question
Required information be silant assets section of the comparetive balance shets of Anders Company i- re below balance sheets of Anders Company is reported ANDERS COMPANY Comparative Balance Sheets 2017 2016 Plant assets Equipment Accum. Depr.-Equipment Equipment, net Buildings Accum. Depr.-Buildings Buildings, net $ 195,0ee 285,eee $ 69,ee0 395,880$ 415,eee $ 286,000121,000 (106,000 (216,e00) 294, eea) ring 2017, a building with a book value of $73,000 and an original cost of $315,000 was sold at 3,000 How much cash did Anders receive from the sale of the building? How much depreciation expense was recorded on buildings during 2017? What was the cost of buildings purchased by Anders during 2017?Explanation / Answer
1. Cash received from the sale of building = Book value + Gain on sale = $73,000 + $63,000 = $136,000
2. Depreciation expense on buildings = Ending accumulated depreciation – Beginning accumulated depreciation + Accumulated depreciation on building sold
Accumulated depreciation on building sold = Original cost – Book value = $315,000 - $73,000 = $242,000
Depreciation expense on buildings = $109,000 - $294,000 + $242,000 = $57,000
3.
Cost of buildings purchased = Ending buildings – Beginning buildings + Original cost of building sold
Cost of buildings purchased = $395,000 - $415,000 + $315,000 = $295,000
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