Accounting Sleuth: Reconstructing Entries

Meubles Fischer SA had the following balances for its property, plant, and equipment accounts (in

thousands of euros):

FIRST NUMBER:September30, 2015 SECOND NUMBER: September30, 2016

Property, plant, and equipment at cost . . . . . . . . . . . . . . . . . . . . . . . .1,000 1,200

Accumulated depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(350) (390)

Property, plant, and equipment, net. . . . . . . . . . . . . . . . . . . . . . . . . . . 650 810

During scal year 2016, Meubles Fischer acquired 100 thousand in property by signing a mort-

gage, plus another 300 thousand in equipment for cash. The company also received 100 thou-

sand in cash from the sale of used equipment, and its income statement reveals a 20 thousand gain

from this transaction.

a. What was the original cost of the used equipment that Meubles Fischer SA sold during scal

year 2016?

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

c. How much depreciation expense did Meubles Fischer SA recognize in its scal year 2016

income statement?