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The following extracts are taken from the financial statements of Fleming Ltd: Income statement For the year ended Note 31 December 2017 5 | Gross
The following extracts are taken from the financial statements of Fleming Ltd: Income statement For the year ended Note 31 December 2017 5 | Gross profit Sales, general and administrative expense | Loss on disposal of plant and equipment Profit before interest and tax 73,620 (54,500) (7,000) 12,120 Note 31 December 2017 31 December 2016 Balance Sheet as at Assets Property Plant and Equipment (Net) 172,000 160,000 Note 5 - Sales, general and administrative expense This includes depreciation on property, plant and equipment Note 12 - PPE 31 December 2017 31 December 2016 PPE at cost 214,000 200,000 (42,000) (40,000) Less Accumulated depreciation Carrying value 172,000 160,000 During the year 2017, machinery with a cost of 45,000 and accumulated depreciation of 14,000 was sold for cash. New machinery was purchased for cash. Calculate: (a) The proceeds from the sale of machinery during the year 2017 (b) The cash spent on new machinery purchased during the year 2017 (c) Depreciation expense on property, plant and equipment for the year 2017
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