On its December 31, 2014 balance sheet

Calgary Industries reports equipment of $370,000 and accumulated depreciation of $74,000. During 2015, the company plans to purchase additional equipment that costs $80,000 and expects a depreciation expense of $30,000. 

Additionally, it plans to dispose of equipment that originally cost $42,000 and had accumulated depreciation of $5,600. 

What are the balances for equipment and accumulated depreciation, respectively, in the budgeted balance sheet as of December 31, 2015 ?

Answer rating: 100% (QA)

We can start by calculating the net book value NBV of the equipment as of December 31 2014 NBV Equip... View the full answer