ANDERS COMPANY Comparative Balance Sheets Plant assets 2016 2015 Equipment $245,
ID: 2570928 • Letter: A
Question
ANDERS COMPANY
Comparative Balance Sheets
Plant assets 2016 2015
Equipment $245,000 $335,000
Accum. Depr.—Equipment (126,000) (236,000)
Equipment, net = $119,000 = $99,000
Buildings $445,000 $465,000
Accum. Depr.—Buildings (139,000) (324,000)
Buildings, net =$306,000 =$141,000
Refer to the balance sheet data above from Anders Company. During 2016, equipment with a book value of $53,000 and an original cost of $275,000 was sold at a loss of $5,600.
1. How much cash did Anders receive from the sale of equipment?
Cash Recieved from the sale of equipment =
2. How much depreciation expense was recorded on equipment during 2016?
Depreciation Expense =
3. What was the cost of new equipment purchased by Anders during 2016?
Purchase of equipment =
Explanation / Answer
2 Beginning Accumulated Depreciation 236000 Less Depreciation on equipment sold(275000-53000) 222000 + Depreciation expense X Ending Accumulated Depreciation 126000 X = 112000 3 Beg. Equipment 335000 Less Equipment Sold 275000 Plus Equipment purchased X Ending Equipment 245000 X = 185000 1 Book value of equipment sold - dep on equip sold - loss on sale = cash received 275000-220000-5600=47400