Caribbean Sales, Inc., sells electronics and appliances. The excerpts that follow are adapted from Caribbean’s financial statements for 2021 and 2020: 

Requirements 

1. How much was Caribbean’s cost of plant assets at April 30, 2021? How much was the book value of plant assets? Show computations. 

2. The financial statements provide three pieces of evidence that Caribbean purchased plant assets and goodwill during fiscal year 2021. What are they? 

3. Prepare T-accounts for Property, Plant, and Equipment; Accumulated Depreciation; and Goodwill. Then fill in the T-accounts with information from the comparative balance sheets and cash flow statements. Label each increase or decrease and give its dollar amount. 

4. Prepare the journal entry for the sale of property, plant, and equipment in 2021.

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Balance Sheet (dollars in millions) Assets Total current assets. Property, plant and equipment. Less: Accumulated depreciation Goodwill.............. Statement of Cash Flows (dollars in millions) Operating activities: Net income....... April 30, 2021 2020 $7,989 $6,909 4,834 4,193 2,128 1,730 554 519 Noncash items affecting net income: Depreciation......... Gain on sale of property, plant, and equipment. Investing activities: Additions to property, plant, and equipment. Sale of property, plant, and equipment. Year Ended April 30, 2021 2020 $1,143 $981 463 (134) (714) 142 453 0 (617) 0