Question
The following selected data were taken from the financial statements of Aggie Company. Dec 31, 2018 Dec 31, 2019 Accounts receivable $380,000 $360,000 Rent receivable
- The following selected data were taken from the financial statements of Aggie Company.
| Dec 31, 2018 | Dec 31, 2019 |
Accounts receivable | $380,000 | $360,000 |
Rent receivable | 3,200 | 3,360 |
Inventories | 180,000 | 176,000 |
Supplies | 1,360 | 2,000 |
Property, plant, & equipment | 400,000 | 480,000 |
Accumulated depreciation | 80,000 | 84,000 |
Accounts payable | 216,000 | 212,000 |
Other accrued liabilities | 40,800 | 43,200 |
Retained earnings | 72,000 | 100,160 |
In addition, you have learned that property, plant, and equipment with a historical cost of $16,000 was sold during the year for cash. Accumulated depreciation related to the assets sold was $4,000.
Aggie Companys income statement for 2019 is below
Revenues |
|
Sales | $400,000 |
Rental Income | 6,560 |
Gains on sales of P, P, &E | 1,600 |
Total revenues | 408,160 |
Expenses |
|
COGS | 278,800 |
Supplies used | 3,760 |
Other accrued expenses | 61,600 |
Depreciation expense | 8,000 |
Total expenses | 352,160 |
Net Income | 56,000 |
- For how much was the property, plant, and equipment sold during the year?
- How much property, plant, and equipment was purchased during the year?
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