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Here is selected financial statement data regarding a company's property, plant, and equipment.

Balance Sheet: Dec. 31, 2018 Dec. 31, 2017
Property, plant, and equipment $ 1,725,000 $ 1,600,000
Accumulated depreciation 520,000 465,000
Income Statement: 2018
Depreciation expense $ 90,000
Gain on sale of property, plant, and equipment 6,000


Acquisitions of PPE were $500,000 during the year.

In the statement of cash flows, the investing activities section should show a cash receipt from "sales of property, plant, and equipment" for $______

Respuesta :

TomShelby

Answer:

sale for 346,000

Explanation:

1,725,000 - 1,600,000 = 125,000

if we acquire 500,000

and the different is 125,000 this means we sale for :

purchase - sales = net change

500,000 - sales = 125,000

sales = 500,000 - 125,000 = 375,000

now we solve for the depreciation during the year applied to these assets

520,000 - 465,000 = 55,000

depreciation expense for  the year 90,000

there is 35,000 depreciation write off therefore, associate with the traded PPE

net book value of the traded PPE:

375,000 - 35,000 = 340,000

we have a gain for 6,00 thus we sale for 346,000

We had a gain for 6,000

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