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 Balance Sheets Plant assets Equipment Accumulated depreciation-Equipment Equipment, net Buildings Accumulated depreciation-Buildings Buildings, net 2019 $ 230,000 (120,000) $ 110,000 $ 430,000 (130,000) $ 300,000 2018 $ 320,000 (230,000) $ 90,000 $ 450,000 (315,000) $ 135,000 During 2019, equipment with a book value of $50,000 and an original cost of $260,000 was sold at a loss of $5,000. 1. How much cash did Anders receive from the sale of equipment? 2. How much depreciation expense was recorded on equipment during 2019? 3. What was the cost of new equipment purchased by Anders during 2019?
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 Balance Sheets Plant assets Equipment Accumulated depreciation-Equipment Equipment, net Buildings Accumulated depreciation-Buildings Buildings, net 2019 $ 230,000 (120,000) $ 110,000 $ 430,000 (130,000) $ 300,000 2018 $ 320,000 (230,000) $ 90,000 $ 450,000 (315,000) $ 135,000 During 2019, equipment with a book value of $50,000 and an original cost of $260,000 was sold at a loss of $5,000. 1. How much cash did Anders receive from the sale of equipment? 2. How much depreciation expense was recorded on equipment during 2019? 3. What was the cost of new equipment purchased by Anders during 2019?
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity
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![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 Balance Sheets
Plant assets
Equipment
Accumulated depreciation-Equipment
Equipment, net
Buildings
Accumulated depreciation-Buildings
Buildings, net
2019
2018
$ 320,000
(230,000)
$ 90,000
$ 230,000
(120,000)
$ 110,000
$430,000
(130,000)
$ 450,000
(315,000)
$ 300,000 $ 135,000
During 2019, equipment with a book value of $50,000 and an original cost of $260,000 was sold at a loss of $5,000.
1. How much cash did Anders receive from the sale of equipment?
2. How much depreciation expense was recorded on equipment during 2019?
3. What was the cost of new equipment purchased by Anders during 2019?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5439e5d7-6cf8-4551-b892-bda545ef22db%2Ffe444c66-4aab-476a-8ad1-ba5575c0e654%2Fbmpalg9_processed.png&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 Balance Sheets
Plant assets
Equipment
Accumulated depreciation-Equipment
Equipment, net
Buildings
Accumulated depreciation-Buildings
Buildings, net
2019
2018
$ 320,000
(230,000)
$ 90,000
$ 230,000
(120,000)
$ 110,000
$430,000
(130,000)
$ 450,000
(315,000)
$ 300,000 $ 135,000
During 2019, equipment with a book value of $50,000 and an original cost of $260,000 was sold at a loss of $5,000.
1. How much cash did Anders receive from the sale of equipment?
2. How much depreciation expense was recorded on equipment during 2019?
3. What was the cost of new equipment purchased by Anders during 2019?
Transcribed Image Text:1. Cash received from the sale of equipment
2. Depreciation expense
3. Purchase of equipment
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