DETERMINING CASH FLOWS FROM INVESTING ACTIVITIES Burns Companys 2009 and 2008 balance sheets presented the following data

Question:

DETERMINING CASH FLOWS FROM INVESTING ACTIVITIES Burns Company’s 2009 and 2008 balance sheets presented the following data for equipment:

12/31/2009 12/31/2008 Equipment $260,000 $225,000 Accumulated depreciation 115,000 92,000 Book value $145,000 $133,000 During 2009, equipment costing $35,000 with accumulated depreciation of $30,000 was sold for cash, producing a $4,400 gain.

Required:

. Calculate the amount of depreciation expense for 2009.

. Calculate the amount of cash spent for equipment during 2009.

. Calculate the amount that should be included as a cash inflow from the sale of equipment.

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