Working backward from changes in the Buildings and Equipment account. The comparative balance sheets of American Airlines
Question:
Working backward from changes in the Buildings and Equipment account. The comparative balance sheets of American Airlines show a balance in the Buildings and Equipment account at cost on December 31, Year 4, of \(\$ 17,369\) million; at December 31 , Year 3, the balance was \(\$ 16,825\) million. The Accumulated Depreciation account shows a balance of \(\$ 5,465\) million at December 31 , Year 4 , and of \(\$ 4,914\) million at December 31, Year 3. The statement of cash flows reports that expenditures for buildings and equipment during Year 4 totaled \(\$ 1,314\) million. The income statement indicates a depreciation charge of \(\$ 1,253\) million during Year 4. The firm sold buildings and equipment during the year at their book value.
Calculate the acquisition cost and accumulated depreciation of the buildings and equipment that were retired during the year and the proceeds from the disposition.
Step by Step Answer:
Financial Accounting An Introduction To Concepts Methods And Uses
ISBN: 9780324183511
10th Edition
Authors: Clyde P. Stickney, Roman L. Weil