DETERMINING CASH FLOWS INVOLVING EQUIPMENT. Burns Company’s 19x9 and 19x8 balance sheets presented the following data for equipment:

During 19x9 equipment costing $35,000 with accumulated depreciation of $30,000 was sold for cash, producing a $4,400 gain.

REQUIRED: 1. What was the amount of depreciation expense for 19x9? 2. What was the amount of cash spent for equipment during 19x9? 3. What amount should be included as a cash inflow from the sale of the equipment?

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Equipment Accumulated depreciation Book value 12/31/x9 12/31/x8 $260,000 115,000 $225,000 92,000 $145,000 $133,000