Question
The Capitals Company has provided you the following information pertaining to the year ending December 31, 2018: January 1, 2018 December 31, 2018 Equipment $
The Capitals Company has provided you the following information pertaining to the year ending December 31, 2018:
January 1, 2018 | December 31, 2018 | ||||||
Equipment | $ | 575,000 | $ | 729,000 | |||
Accumulated depreciation | $ | 165,000 | $ | 120,500 | |||
Equipment costing $25,000 was acquired in exchange for common stock.
Equipment with an original cost of $57,500 and a book value of $5,000 was scrapped.
Equipment was purchased in exchange for cash.
Equipment with a book value of $39,000 was sold resulting in a $14,000 gain. The accumulated depreciation at the time of the sale was $67,000.
Required:
Determine the cash paid for equipment purchases during 2018.
Determine the depreciation expense for 2018.
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