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 COMPANYComparative Year-End Balance Sheets20212020Plant assetsEquipmentAccumulated depreciation-EquipmentEquipment, netBuildingsAccumulated depreciation-Buildings$ 180,000(100,000)$ 80,000$ 380, 000(100,000)$ 280,000$ 270,000(210,000)$ 60, 000$ 400,000(285,000)$ 115,000Buildings, netDuring 2021, equipment with a book value of $40,000 and an original cost of $210,000 was sold at a loss of $3,000.1. How much cash did Anders receive from the sale of equipment?2. How much depreciation expense was recorded on equipment during 2021?3. What was the cost of new equipment purchased by Anders during 2021?1. Cash received from the sale of equipment2. Depreciation expense3. Purchase of equipment

Solution 1: Cash received from sale of equipment = Book value - Loss = $40,000 - $3,000 = $37,000

The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANY Comparative Year-End Balance Sheets 2021 2020 Plant assets Equipment Accumulated depreciation-Equipment Equipment, net Buildings Accumulated depreciation-Buildings Buildings, net $ 180,000 (100,000) $ 80,000 $ 380, 000 (180, e00) $ 280,000 $ 270,000 (210,000) $ 60, 000 $ 400, 000 (285,000) $ 115,000 During 2021, equipment with a book value of $40,000 and an original cost of $210,000 was sold at a loss of $3,000. - How much cash did Anders receive from the sale of equipment? . How much depreciation expense was recorded on equipment during 2021? .What was the cost of new equipment purchased by Anders during 2021? 1. Cash received from the sale of equipment 2. Depreciation expense B. Purchase of equipment

The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANY Comparative Year-End Balance Sheets 2021 2020 Plant assets Equipment Accumulated depreciation-Equipment Equipment, net Buildings Accumulated depreciation-Buildings Buildings, net $ 180,000 (100,000) $ 80,000 $ 380, 000 (180, e00) $ 280,000 $ 270,000 (210,000) $ 60, 000 $ 400, 000 (285,000) $ 115,000 During 2021, equipment with a book value of $40,000 and an original cost of $210,000 was sold at a loss of $3,000. - How much cash did Anders receive from the sale of equipment? . How much depreciation expense was recorded on equipment during 2021? .What was the cost of new equipment purchased by Anders during 2021? 1. Cash received from the sale of equipment 2. Depreciation expense B. Purchase of 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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