Question: Use the following information for the Quick Study below. The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS
Use the following information for the Quick Study below.
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 | $ | 255,000 | $ | 345,000 | ||||
| Accum. Depr.Equipment | (130,000 | ) | (240,000 | ) | ||||
| Equipment, net | $ | 125,000 | $ | 105,000 | ||||
| Buildings | $ | 455,000 | $ | 475,000 | ||||
| Accum. Depr.Buildings | (145,000 | ) | (330,000 | ) | ||||
| Buildings, net | $ | 310,000 | $ | 145,000 | ||||
QS 16-5 Indirect: Computing investing cash flows LO P2
During 2017, equipment with a book value of $55,000 and an original cost of $285,000 was sold at a loss of $6,000. 1. How much cash did Anders receive from the sale of equipment?
2. How much depreciation expense was recorded on equipment during 2017?
3. What was the cost of new equipment purchased by Anders during 2017?
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