Albanel Ltd. (Albanel) is a manufacturing company. On December 31, 2013, Albanel reported property, plant, and equipment, net of accumulated depreciation, of $4,750,000. Below is Albanel’s cash flow statement for the year ended December 31, 2014.

Required:

a. What were the carrying amounts of the property, plant, and equipment Albanel sold during 2014?

b. What amount would Albanel report for property, plant, and equipment, net of accumulated depreciation, on its December 31, 2014, balance sheet?

Transcribed Image Text:

Albanel Ltd. Cash Flow Statement for the Year Ended December 31, 2014 Net income $275,000 Depreciation expense 310,000 Gain on sale of land (75,000) Gain on sale of equipment (32,000) Loss on sale of building 110,000 Increase in non-cash working capital (70,000) 518,000 Investing Activities Purchase of land and building (487,000) Purchase of equipment (315,000) Proceeds from sale of building 780,000 Proceeds from sale of land 225,000 Proceeds from sale of equipment 100,000 303,000 Financing Activities Repayment of long-term debt (800,000) Increase in cash during the year 21,000 Cash at beginning year 82,000 Cash at end of year $103,000