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P12-2B The following selected account balances relate to the plant asset accounts of Lazari Inc. at year-end. 2014 2013 Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Depreciation expense Equipment Land Loss on disposal of plant assets $337,500 144,000 750,000 99,500 300,000 120,000 6,000 $300,000 96,000 750,000 85,500 240,000 70,000 Additional information: 1. Lazari purchased $85,000 of equipment and $50,000 of land for cash in 2014. 2. Lazari also sold equipment in 2014. 3. Depreciation expense in 2014 was $37,500 on building and $62,000 on equipment. Instructions (a) Determine the amounts of any cash inflows or outflows related to the plant asset accounts in 2014. (b) Indicate where each of the cash inflows or outflows identified in (a) would be classi- fied on the statement of cash flows.

P12-2B The following selected account balances relate to the plant asset accounts of Lazari Inc. at year-end. 2014 2013 Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Depreciation expense Equipment Land Loss on disposal of plant assets $337,500 144,000 750,000 99,500 300,000 120,000 6,000 $300,000 96,000 750,000 85,500 240,000 70,000 Additional information: 1. Lazari purchased $85,000 of equipment and $50,000 of land for cash in 2014. 2. Lazari also sold equipment in 2014. 3. Depreciation expense in 2014 was $37,500 on building and $62,000 on equipment. Instructions (a) Determine the amounts of any cash inflows or outflows related to the plant asset accounts in 2014. (b) Indicate where each of the cash inflows or outflows identified in (a) would be classi- fied on the statement of cash flows.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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P12-2B The following selected account balances relate to the plant asset accounts of Lazari Inc. at year-end. 2014 2013 Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Depreciation expense Equipment Land $337,500 144,000 750,000 99,500 $300,000 96,000 750,000 85,500 240,000 70,000 300,000 120,000 6,000 Loss on disposal of plant assets Additional information: 1. Lazari purchased $85,000 of equipment and $50,000 of land for cash in 2014. 2. Lazari also sold equipment in 2014. 3. Depreciation expense in 2014 was $37,500 on building and $62,000 on equipment. Instructions (a) Determine the amounts of any cash inflows or outflows related to the plant asset accounts in 2014. (b) Indicate where each of the cash inflows or outflows identified in (a) would be classi- fied on the statement of cash flows.
Transcribed Image Text:P12-2B The following selected account balances relate to the plant asset accounts of Lazari Inc. at year-end. 2014 2013 Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Depreciation expense Equipment Land $337,500 144,000 750,000 99,500 $300,000 96,000 750,000 85,500 240,000 70,000 300,000 120,000 6,000 Loss on disposal of plant assets Additional information: 1. Lazari purchased $85,000 of equipment and $50,000 of land for cash in 2014. 2. Lazari also sold equipment in 2014. 3. Depreciation expense in 2014 was $37,500 on building and $62,000 on equipment. Instructions (a) Determine the amounts of any cash inflows or outflows related to the plant asset accounts in 2014. (b) Indicate where each of the cash inflows or outflows identified in (a) would be classi- fied on the statement of cash flows.
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