Required information The following information applies to th

Required information [The following information applies to the questions displayed below] The plant assets section of the comparative balance sheets of Anders Company is reported below 2 of 2 2016 208,00e 290,000 Accum. Depr.-Equipment 108,000 $ 92,000 72,000 s 400,000 420,000 (112,000) (297,000) 288,00e 123,000 Buildings Accum. Depr.-Buildings During 2017, a building with a book value of $74,000 and an original cost of $320,000 was sold at a gain of $64.000. 1. How much cash did Anders receive from the sale of the building? 2. How much depreciation expense was recorded on buildings during 2017? 3. What was the cost of buildings purchased by Anders during 2017? nces ved from the sale of building expense

Solution

1. Cash Receive from Sale of Building $138,000.00 2. Depreciation Expense On Building Recorded for 2017 $61,000.00 3. Cost of Building Purchase during 2017 $300,000.00 1. COmputation of Cash Received on Sale of Building:- Particular Amount Book Value of Building $74,000.00 Profit on Sale of Building $64,000.00 Cash received from Customer $138,000.00 2. Computation of Depreciation Expense on Building Accumulated Depreciation - Building Particular Amount Particular Amount Depreciation Expense on Asset sold ( $320000-$74000) $246,000 Opening Balance on 1 Jan 2017 $297,000 Closing Balance on 31Dec 2017 $112,000 Depreciation Expense for the year 2017 ( B.F) $61,000 Total $358,000 $358,000 3. Computation of Cost of Building Purchased Building Particular Amount Particular Amount Opening Balance on 1 Jan 2017 $420,000 Cash - Sale $320,000 Cash ( Purchase) ( B.f.) $300,000 Closing Balance on 31Dec 2017 $400,000 Total $720,000 $720,000