Determining Cash Flows from Investing Activities

Burns Company's 2019 and 2018 balance sheets presented the following data for equipment:

12/31/2019 12/31/2018

Equipment $275,000 $225,000

Accumulated depreciation 128,300 92,700

Book value $146,700 $132,300

During 2019, equipment costing $35,000 with accumulated depreciation of $32,075 was sold for cash, producing a $4,000 gain.

Required:

1. Calculate the amount of depreciation expense for 2019.

2, Calculate the amount of cash spent for equipment during 2019.

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