Kasznik Ltd. had the following balances for its property, plant, and equipment accounts (in millions of pounds):

During 2018, Kasznik Ltd. paid £28 million in cash to acquire property and equipment, and this amount represents all the acquisitions of property, plant, and equipment for the period. The company's income statement reveals depreciation expense of £17 million and a £5 million loss from the disposal of used equipment.

a. What was the original cost of the used equipment that Kasznik Ltd. sold during 2018?

b. How much depreciation had been accumulated on the used equipment at the time it was sold?

c. How much cash did Kasznik Ltd. receive from its disposal of used equipment?

Transcribed Image Text:

December December 31, 2017 31, 2018 Property, plant, and equipment at cost... Accumulated depreciation.... Property, plant, and equipment, net ... £175 £183 .... (78) (83) .... £ 97 £100