In: Accounting
Use the following information for the Quick Study below.
The plant assets section of the comparative balance sheets of
Anders Company is reported below.
ANDERS COMPANY | ||||||||
Comparative Balance Sheets | ||||||||
2017 | 2016 | |||||||
Plant assets | ||||||||
Equipment | $ | 195,000 | $ | 285,000 | ||||
Accum. Depr.—Equipment | (106,000 | ) | (216,000 | ) | ||||
Equipment, net | $ | 89,000 | $ | 69,000 | ||||
Buildings | $ | 395,000 | $ | 415,000 | ||||
Accum. Depr.—Buildings | (109,000 | ) | (294,000 | ) | ||||
Buildings, net | $ | 286,000 | $ | 121,000 | ||||
QS 16-6 Indirect: Computing investing cash flows LO P2
During 2017, a building with a book value of $73,000 and an
original cost of $315,000 was sold at a gain of $63,000.
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?
|
Accumulated dep on building sold | ||||||||
original cost | 315,000 | |||||||
less:Accumulated depreciation | 242,000 | |||||||
Book value at year end | 73,000 | |||||||
1) | book value at year end | 73,000 | ||||||
Add:gain on sale of building | 63,000 | |||||||
Cash received on sale of building | 136,000 | |||||||
2) | Accumulated dep on building sold | |||||||
original cost | 315,000 | |||||||
less:Accumulated depreciation | 242,000 | |||||||
Book value at year end | 73,000 | |||||||
Accumulated depreciation 2016 | 294,000 | |||||||
less accumulated dep on building sold | -242,000 | |||||||
balance | 52,000 | |||||||
Accumulated depreciation for year 2017 | 109,000 | |||||||
less balance (above) | -52,000 | |||||||
Depreciation for the year 2017 | 57,000 | |||||||
3) | cost of building purchased | |||||||
cost on 2016 | 415000 | |||||||
less sold | -315,000 | |||||||
balance | 100000 | |||||||
buildings cost in 2017 | 395,000 | |||||||
less balance above | -100,000 | |||||||
cost of building purchased | 295,000 | |||||||
1 | cash received from sale of building | 136,000 | ||||||
2 | Depreciation expense | 57,000 | ||||||
3 | purchase of building | 295,000 | ||||||