Burns Company's 2019 and 2018 balance sheets presented the following data for equipment: Equipment Accumulated depreciation Book value Jan. 1 $225,000 92,700 $132,300 Dec. 31 2. Calculate the amount of cash spent for equipment. $275,000 128,300 $146,700 During the year, equipment costing $35,000 with accumulated depreciation of $31,175 was sold for cash, producing a $4,600 gain. Required: 1. Calculate the amount of depreciation expense. 3. Calculate the amount that should be included as a cash inflow from the disposal of equipment.

Burns Company's 2019 and 2018 balance sheets presented the following data for equipment: Equipment Accumulated depreciation Book value Jan. 1 $225,000 92,700 $132,300 Dec. 31 2. Calculate the amount of cash spent for equipment. $275,000 128,300 $146,700 During the year, equipment costing $35,000 with accumulated depreciation of $31,175 was sold for cash, producing a $4,600 gain. Required: 1. Calculate the amount of depreciation expense. 3. Calculate the amount that should be included as a cash inflow from the disposal of equipment.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 41E: Determining Cash Flows from Investing Activities Burns Companys 2019 and 2018 balance sheets...

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