Accounting Sleuth: Reconstructing Entries

Kasznik Ltd. had the following balances for its property, plant, and equipment accounts (in millions of pounds):

	Dec 31 Year 7	Dec 31 Year 8
Property, plant & equipment at cost	525	549
Accumulated depreciation	(234)	(249)
Property, plant & equipment, net	291	300

During Year 8, Kasznik Ltd. paid 84 million in cash to acquire property and equipment, and this amount represents all the acquisitions of property, plant, and equipment for the period. The companys income statement reveals depreciation expense of 51 million and a 15 million loss from the disposal of used equipment.

Note: Enter answers in millions.

a. What was the original cost of the used equipment that Kasznik Ltd. sold during Year 8? Answer

b. How much depreciation had been accumulated on the used equipment at the time it was sold? Answer

c. How much cash did Kasznik Ltd. receive from its disposal of used equipment? Answer