Refer to the balance sheet data in QS 16-10 from Anders Company. During 2021, 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 2021? 

3. What was the cost of buildings purchased by Anders during 2021?

Data From QS 16-10

The plant assets section of the comparative balance sheets of Anders Company is reported below.

Refer to the balance sheet data above from Anders Company. 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. 

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?

Transcribed Image Text:

ANDERS COMPANY Comparative Year-End Balance Sheets Plant assets 2021 2020 $ 270,000 (210,000) $ 60,000 Equipment $ 180,000 Accumulated depreciation-Equipment.. (100,000) $ 80,000 Equipment, net.. $ 380,000 (100,000) $ 280,000 $ 400,000 Buildings..... Accumulated depreciation-Buildings (285,000) $ 115,000 Buildings, net.