The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANY
Question:
The plant assets section of the comparative balance sheets of Anders Company is reported below.
| ANDERS COMPANY | ||||||||
| Comparative Balance Sheets | ||||||||
| | | | 2017 | | | | 2016 | |
| Plant assets | | | | | | | | |
| Equipment | | $ | 305,000 | | | $ | 395,000 | |
| Accum. Depr.—Equipment | | | (150,000 | ) | | | (260,000 | ) |
| Equipment, net | | $ | 155,000 | | | $ | 135,000 | |
| Buildings | | $ | 505,000 | | | $ | 525,000 | |
| Accum. Depr.—Buildings | | | (175,000 | ) | | | (360,000 | ) |
| Buildings, net | | $ | 330,000 | | | $ | 165,000 | |
| | ||||||||
During 2017, a building with a book value of $95,000 and an original cost of $425,000 was sold at a gain of $85,000.
1. How much cash did Anders receive from the sale of the building?
2. How much depreciation expense was recorded on buildings during 2017?
3. What was the cost of buildings purchased by Anders during 2017?
Expert Answer:
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
