Question
The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANY Comparative Balance Sheets 2017 2016 Plant assets Equipment
The plant assets section of the comparative balance sheets of Anders Company is reported below.
| ANDERS COMPANY | ||||||||
| Comparative Balance Sheets | ||||||||
| 2017 | 2016 | |||||||
| Plant assets | ||||||||
| Equipment | $ | 285,000 | $ | 375,000 | ||||
| Accum. Depr.Equipment | (142,000 | ) | (252,000 | ) | ||||
| Equipment, net | $ | 143,000 | $ | 123,000 | ||||
| Buildings | $ | 485,000 | $ | 505,000 | ||||
| Accum. Depr.Buildings | (163,000 | ) | (348,000 | ) | ||||
| Buildings, net | $ | 322,000 | $ | 157,000 | ||||
During 2017, equipment with a book value of $61,000 and an original cost of $210,000 was sold at a loss of $7,200.
1. How much depreciation expense was recorded on equipment during 2017?
2. What was the cost of new equipment purchased by Anders during 2017?
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Financial Accounting Oakton Community College Tools For Business Decision Making
Authors: Paul D. Kimmel ,Jerry J. Weygandt ,Donald E. Kieso
6th Edition
1118113632, 978-1118113639
