Homework Help is Here – Start Your Trial Now!
Business
Accounting
Determining Cash Flows from Investing Activities Burns Company’s 2019 and 2018 balance sheets presented the following data for equipment: Jan. 1    Dec. 31 Equipment    $262,000        $325,000     Accumulated depreciation    108,000        133,900     Book value    $154,000        $191,100     During the year, equipment costing $41,000 with accumulated depreciation of $36,700 was sold for cash, producing a $3,200 gain. Required: 1.  Calculate the amount of depreciation expense. $fill in the blank 1 2.  Calculate the amount of cash spent for equipment. $fill in the blank 2 3.  Calculate the amount that should be included as a cash inflow from the disposal of equipment.

Determining Cash Flows from Investing Activities Burns Company’s 2019 and 2018 balance sheets presented the following data for equipment: Jan. 1    Dec. 31 Equipment    $262,000        $325,000     Accumulated depreciation    108,000        133,900     Book value    $154,000        $191,100     During the year, equipment costing $41,000 with accumulated depreciation of $36,700 was sold for cash, producing a $3,200 gain. Required: 1.  Calculate the amount of depreciation expense. $fill in the blank 1 2.  Calculate the amount of cash spent for equipment. $fill in the blank 2 3.  Calculate the amount that should be included as a cash inflow from the disposal of equipment.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Determining Cash Flows from Investing Activities

Burns Company’s 2019 and 2018 balance sheets presented the following data for equipment:

Jan. 1    Dec. 31
Equipment    $262,000        $325,000    
Accumulated depreciation    108,000        133,900    
Book value    $154,000        $191,100    
During the year, equipment costing $41,000 with accumulated depreciation of $36,700 was sold for cash, producing a $3,200 gain.

Required:

1.  Calculate the amount of depreciation expense.
$fill in the blank 1
2.  Calculate the amount of cash spent for equipment.
$fill in the blank 2
3.  Calculate the amount that should be included as a cash inflow from the disposal of equipment. 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Property, Plant and Equipment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS