Disposal of Plant Assets

A piece of equipment that cost $63,600 and on which $35,800 of accumulated depreciation had been recorded was disposed of on January 2, the first day of business of the current year. For each of the following assumptions, compute the gain or loss on the disposal. If required, use the minus sign to indicate a loss.

1. The equipment was discarded as having no value. $

2. The equipment was sold for $12,300 cash. $

3. The equipment was sold for $35,800 cash. $

Zee Corporation had net cash flows from operating activities during the past year of $432,000. During the year, the company expended $924,000 for property, plant, and equipment; sold property, plant, and equipment for $108,000; and paid dividends of $100,000.

Calculate the companys free cash flow. If required, use the minus sign to indicate a negative cash flow. $