Problem 5: Sleuth Question

The YXZ companys beginning and ending Plant account balances were $1,800,000 and $2,370,000 respectively. The beginning and ending Accumulate Depreciation account balances were $560,000 and $615,000. Equipment was sold for $80,000. The equipment had cost $120,000 and had $40,000 of accumulated depreciation.

Please answer the following

A) How much was the gain or loss on the sale of Equipment?

B) How much was the Depreciation Expense?

C) How much did the company spend on Purchases of Equipment?