1. How much cash did Anders receive from the sale of the building? 2. How much depreciation expense was recorded on buildings during 2020? 3. What was the cost of buildings purchased by Anders during 2020? 1. Cash received from the sale of building 2. Depreciation expense 3. Purchase of building
1. How much cash did Anders receive from the sale of the building? 2. How much depreciation expense was recorded on buildings during 2020? 3. What was the cost of buildings purchased by Anders during 2020? 1. Cash received from the sale of building 2. Depreciation expense 3. Purchase of building
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The plant assets section of the comparative balance sheets of Anders Company is reported below.
ANDERS COMPANY
Comparative Year-End Balance
Plant assets
Equipment
Accumulated depreciation-Equipment
Equipment, net
Buildings
Accumulated depreciation-Buildings
Buildings, net
Sheets
2020
1. Cash received from the sale of building
2. Depreciation expense
3. Purchase of building
$ 200,000
(108,000)
$ 92,000
$ 400,000
(112,000)
$ 288,000
2019
$ 290,000
(218,000)
$ 72,000
$ 420,000
(297,000)
$ 123,000
During 2020, a building with a book value of $74,000 and an original cost of $320,000 was sold at a gain of $64,000.
1. How much cash did Anders receive from the sale of the building?
2. How much depreciation expense was recorded on buildings during 2020?
3. What was the cost of buildings purchased by Anders during 2020?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcca344af-066d-4451-8efd-e4129415e7be%2F0f23ff75-f852-4178-9167-be97b3a4be58%2F6xvdydv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The plant assets section of the comparative balance sheets of Anders Company is reported below.
ANDERS COMPANY
Comparative Year-End Balance
Plant assets
Equipment
Accumulated depreciation-Equipment
Equipment, net
Buildings
Accumulated depreciation-Buildings
Buildings, net
Sheets
2020
1. Cash received from the sale of building
2. Depreciation expense
3. Purchase of building
$ 200,000
(108,000)
$ 92,000
$ 400,000
(112,000)
$ 288,000
2019
$ 290,000
(218,000)
$ 72,000
$ 420,000
(297,000)
$ 123,000
During 2020, a building with a book value of $74,000 and an original cost of $320,000 was sold at a gain of $64,000.
1. How much cash did Anders receive from the sale of the building?
2. How much depreciation expense was recorded on buildings during 2020?
3. What was the cost of buildings purchased by Anders during 2020?
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