Burns Company€™s 2011 and 2010 balance sheets presented the following data for equipment:

During 2011, equipment costing $35,000 with accumulated depreciation of $31,275 was sold for cash, producing a $4,400 gain.

Required:
1. Calculate the amount of depreciation expense for 2011.
2. Calculate the amount of cash spent for equipment during 2011.
3. Calculate the amount that should be included as a cash inflow from the disposal of equipment.

Transcribed Image Text:

uipment Aocumulated depreciation Book value 12/31/2011 $275,000 128,300 $146,700 12/31/201 $225,000 92,700 $132,300