Use the following information and determine the carrying amount of the property, plant, and equipment of June
Question:
Use the following information and determine the carrying amount of the property, plant, and equipment of June Inc. (June)
on September 30, 2015, the company’s year-end. (An accounting equation spreadsheet, journal entries, or T-accounts may help you answer this question.)
i. On October 1, 2014, the cost of June’s property, plant, and equipment was
$4,750,000 and the accumulated depreciation was $1,450,500.
ii. During fiscal 2015, June sold equipment with a cost of $365,000 at a loss of
$90,000. June received $105,000 in cash.
iii. During fiscal 2015, June sold land for $417,500 cash, which generated a gain for accounting purposes of $120,000.
iv. During fiscal 2015, property, plant, and equipment was purchased for $210,000 cash, plus a long-term note payable of $155,000.
v. During fiscal 2015, June wrote down equipment by $112,000.
vi. June recorded a depreciation expense of $725,000 for fiscal 2015.
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