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Star Ltd provides you with the following information about its property, plant, and equipment: Opening balance of property, plant, and equipment Closing balance of
Star Ltd provides you with the following information about its property, plant, and equipment: Opening balance of property, plant, and equipment Closing balance of property, plant, and equipment Depreciation expense for the year Opening balance of accumulated depreciation Closing balance of accumulated depreciation Gain on sale of property, plant, and equipment Carrying amount of property, plant and equipment that has been disposed of $500 000 $650 000 $50 000 $200 000 $210 000 $20 000 Required: You are to determine how much cash has been received from the disposal of property, plant, and equipment, and how much cash has been used to acquire property, plant and equipment throughout the year.
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