2021 2020 Plant assets Equipment $ 200,000 $ 290,000 Accumulated depreciation—Equipment (108,000) (218,000) Equipment, net $ 92,000 $ 72,000 Buildings $ 400,000 $ 420,000 Accumulated depreciation—Buildings (112,000) (297,000) Buildings, net $ 288,000 $ 123,000 During 2021, equipment with a book value of $44,000 and an original cost of $230,000 was sold at a loss of $3,800. 1. How much cash did Anders receive from the sale of equipment? 2. How much depreciation expense was recorded on equipment during 2021? 3. What was the cost of new equipment purchased by Anders during 2021?
2021 2020 Plant assets Equipment $ 200,000 $ 290,000 Accumulated depreciation—Equipment (108,000) (218,000) Equipment, net $ 92,000 $ 72,000 Buildings $ 400,000 $ 420,000 Accumulated depreciation—Buildings (112,000) (297,000) Buildings, net $ 288,000 $ 123,000 During 2021, equipment with a book value of $44,000 and an original cost of $230,000 was sold at a loss of $3,800. 1. How much cash did Anders receive from the sale of equipment? 2. How much depreciation expense was recorded on equipment during 2021? 3. What was the cost of new equipment purchased by Anders during 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The plant assets section of the comparative balance sheets of Anders Company is reported below.
| ANDERS COMPANY | ||
| Comparative Year-End Balance Sheets | ||
| 2021 | 2020 | |
|---|---|---|
| Plant assets | ||
| Equipment | $ 200,000 | $ 290,000 |
| (108,000) | (218,000) | |
| Equipment, net | $ 92,000 | $ 72,000 |
| Buildings | $ 400,000 | $ 420,000 |
| Accumulated depreciation—Buildings | (112,000) | (297,000) |
| Buildings, net | $ 288,000 | $ 123,000 |
During 2021, equipment with a book value of $44,000 and an original cost of $230,000 was sold at a loss of $3,800.
1. How much cash did Anders receive from the sale of equipment?
2. How much depreciation expense was recorded on equipment during 2021?
3. What was the cost of new equipment purchased by Anders during 2021?
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