Burns Company's 2009 and 2008 balance sheets presented the following data for equipment:

During 2009, equipment costing $35,000 with accumulated depreciation of $30,000 was sold for cash, producing a $4,400 gain.

Required:
1. Calculate the amount of depreciation expense for 2009.
2. Calculate the amount of cash spent for equipment during 2009.
3. Calculate the amount that should be included as a cash inflow from the sale ofequipment.

Transcribed Image Text:

Equipment Accumulated depreciation Book value 12/31/2009 $260,000 115,000 $145,000 12/31/2008 $225,000 $133,000 92,000