1. How much cash did Anders receive from the sale of equipment? 2. How much depr
ID: 341991 • Letter: 1
Question
1. How much cash did Anders receive from the sale of equipment?
2. How much depreciation expense was recorded on equipment during 2017?
3. What was the cost of new equipment purchased by Anders during 2017?
During 2017, a building with a book value of $72,000 and an original cost of $310,000 was sold at a gain of $62,000.
1. How much cash did Anders receive from the sale of the building?
2. How much depreciation expense was recorded on buildings during 2017?
3. What was the cost of buildings purchased by Anders during 2017?
Required information The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANY Comparative Balance Sheets 2017 2016 Plant assets 190,000 280,000 Equipment Accum. Depr.-Equipment(104,000) Equipment, net Buildings Accum. Depr.-Buildings Buildings, net (214,000) $ 86,000 66,000 $ 390,000 410,000 (106,000) (291,000) $ 284,000 119,000 During 2017, equipment with a book value of $42,000 and an original cost of $220,000 was sold at a loss of $3,400Explanation / Answer
2017 2016 Equipment 190000 280000 Less : Accumulated Depreciation -104000 -214000 Net Book Value 86000 66000 During 2017, Equipment with book value of $42000 and Original cost of $220000 was sold at loss of $3400. Book Value of Equipment 42000 Less : Loss on Sale -3400 Sale Value 38600 1 Andres receive $38600 from the sale of equipment. 2 Depreciation expenses on equipment during 2017. Balance of Accumulated depreciation as on year 2017 104000 Less : Balance of Accumulated depreciation as on Year 2016 -214000 Add : Depreciation on Sale of Equipment (220000-42000) 178000 Depreciation Expense 68000 3 Cost of New Equipment Balance of cost of Equipment on Year 2017 190000 Add : Sale of Equipment (Original cost) 220000 Less : Balance of equipment as on Year 2016 -280000 Cost of New Equipment 130000 2017 2016 Buildings 390000 410000 Less : Accumulated Depreciation -106000 -291000 Net Book Value 284000 119000 During 2017, Equipment with book value of $72000 and Original cost of $310000 was sold at gain of $62000. Book Value of Equipment 72000 Add : gain on Sale 62000 Sale Value 134000 4 Andres receive $134000 from the sale of equipment. 5 Depreciation expenses on Building during 2017. Balance of Accumulated depreciation as on year 2017 106000 Less : Balance of Accumulated depreciation as on Year 2016 -291000 Add : Depreciation on Sale of Equipment (310000-72000) 238000 Depreciation Expense 53000 6 Cost of New Building Balance of Building as on Year 2017 390000 Add : Sale of Equipment (Original cost) 310000 Less : Balance of Building as on Year 2016 -410000 Cost of New Building 290000
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