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This year ABC Company reported net property, plant, and equipment (PP&E) of $17,607 after having reported...

This year ABC Company reported net property, plant, and equipment (PP&E) of $17,607 after having reported net PP&E of $11,825 last year. During the year the company sold PP&E with a net book value of $1,428 for $1,112. ABC also charged $7,851 in depreciation expenses against its earnings. How much did ABC spend to acquire PP&E during the year? Assume that all new PP&E was acquired for cash. Note that your answer will represent a cash outflow for purchasing new PP&E, but you should present your result as a positive value.

Solutions

Expert Solution

Answer : New PPe acquired for cash = 15061

Calculation :

Closing Net PPE = Opening Net PPE + Purchase - Depreciation - Asset Sold(book value)

17607 = 11825 + Purchase - 7851 - 1428

Purchase = 15061

jeff jeffy answered 2 years ago
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