The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANYComparative Balance Sheets 2017 2016 Plant assets Equipment $180,000 $270,000 Accum. Depr.—Equipment (100,000) (210,000)Equipment, net $80,000 $60,000 Buildings $380,000 $400,000 Accum. Depr.—Buildings (100,000) (285,000)Buildings, net $280,000 $115,000 During 2017, a building with a book value of $70,000 and an original cost of $300,000 was sold at a gain of $60,000. 1. How much cash did Anders receive from the sale of the building?2. How much depreciation expense was recorded on buildings during 2017?3. What was the cost of buildings purchased by Anders during 2017?

1. How much cash did Anders receive from the sale of the building? Particulars Amount $ Book…

Answered: Plant assets Equipment…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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 Balance Sheets
		2017			2016
Plant assets
Equipment	$	180,000		$	270,000
Accum. Depr.—Equipment		(100,000	)		(210,000	)
Equipment, net	$	80,000		$	60,000
Buildings	$	380,000		$	400,000
Accum. Depr.—Buildings		(100,000	)		(285,000	)
Buildings, net	$	280,000		$	115,000

During 2017, a building with a book value of $70,000 and an original cost of $300,000 was sold at a gain of $60,000.

1. How much cash did Anders receive from the sale of the building?
2. How much depreciation expense was recorded on buildings during 2017?
3. What was the cost of buildings purchased by Anders during 2017?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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