CrossCanada Transport Inc. (CC) provides warehouse and distribution services. The excerpts that follow are adapted from CC's financial statements for fiscal year 2020.

{Requirements}
1. How much was CC's cost of property and equipment at October 31, 2020? How much was the carrying amount of premises and equipment? Show computations.
2. The financial statements give three pieces of evidence that \(C C\) purchased premises and equipment during 2020. What are they?
3. Prepare T-accounts for Premises and Equipment and Accumulated Depreciation. Then show all the activity in these accounts during 2020. Did CC dispose of any assets and, if so, what was the carrying amount?
4. Why has goodwill not been amortized?

Transcribed Image Text:

(amounts in thousands) Balance Sheet Assets Total current assets..... Premises and equipment Less Accumulated depreciation..... Goodwill.. Statement of Cash Flows (in millions) Cash provided from operating activities: Net income from continuing operations.... October 31 2020 2019 $237,936 $208,530 5,941 5,246 (3,810) (3,428) 4,752 4,304 For the Year Ended October 31 2020 2019 $5,492 $4,757 Noncash items affecting net income: Depreciation...... 434 405 Cash used in investing activities: Acquisition of premises and equipment.. (706) (511) Cash used in acquisitions (including $41 of premises and equipment) (373) (256)