During 2018, a building with a book value of $93,000 and an original cost of $415,000 was sold at a gain of $83,000. 1. How much cash did Anders receive from the sale of the building? 2. How much depreciation expense was recorded on buildings during 2018? 3. What was the cost of buildings purchased by Anders during 2018? Cash received from the sale of building 1. 2. Depreciation expense 3. Purchase of building

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The plant assets section of the comparative balance sheets of Anders Company is reported below.
1.
2.
3.
ANDERS COMPANY
Comparative Balance Sheets
Plant assets
Equipment
Accumulated depreciation-Equipment
Equipment, net
Buildings
Accumulated depreciation-Buildings
Buildings, net
2018
Cash received from the sale of building
Depreciation expense
Purchase of building
$ 295,000
(146,000)
$ 149,000
$ 495,000
2017
$ 385,000
(256,000)
$ 129,000
$ 515,000
(354,000)
(169,000)
$ 326,000 $ 161,000
During 2018, a building with a book value of $93,000 and an original cost of $415,000 was sold at a gain of $83,000.
1. How much cash did Anders receive from the sale of the building?
2. How much depreciation expense was recorded on buildings during 2018?
3. What was the cost of buildings purchased by Anders during 2018?
Transcribed Image Text:The plant assets section of the comparative balance sheets of Anders Company is reported below. 1. 2. 3. ANDERS COMPANY Comparative Balance Sheets Plant assets Equipment Accumulated depreciation-Equipment Equipment, net Buildings Accumulated depreciation-Buildings Buildings, net 2018 Cash received from the sale of building Depreciation expense Purchase of building $ 295,000 (146,000) $ 149,000 $ 495,000 2017 $ 385,000 (256,000) $ 129,000 $ 515,000 (354,000) (169,000) $ 326,000 $ 161,000 During 2018, a building with a book value of $93,000 and an original cost of $415,000 was sold at a gain of $83,000. 1. How much cash did Anders receive from the sale of the building? 2. How much depreciation expense was recorded on buildings during 2018? 3. What was the cost of buildings purchased by Anders during 2018?
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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