1 Balance Sheet: Dec. 31, 2018 Dec. 31, 2017
Property, plant, and equipment $ 800,000 $...
1 Balance Sheet: Dec. 31, 2018 Dec. 31, 2017
Property, plant, and equipment $ 800,000 $ 559,000
Accumulated depreciation 142,000 86,000
Income Statement: 2018
Depreciation expense $ 90,000
Loss on sale of property, plant, and equipment 19,000
During the year, PPE with a book value of $48,000 were sold.
In the statement of cash flows, the investing activities section
should show a cash disbursement for "purchases of property, plant,
and equipment" for $ ______
2 Dec. 31, 2018 Dec. 31,...
Here is selected financial statement data regarding a company's
property, plant, and equipment.
Balance Sheet:
Dec....
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
$ 193,000
$ 188,000
Accumulated depreciation
75,000
37,000
Income Statement:
2018
Depreciation expense
$ 58,000
Gain on sale of property, plant, and equipment
4,000
During the year, PPE with a book value of $48,000 were sold.
In the statement of cash flows, the investing activities
section should show a cash disbursement for "purchases of property,...
Accounting Sleuth: Reconstructing Entries
Kasznik Ltd. had the following balances for its property, plant and
equipment...
Accounting Sleuth: Reconstructing Entries
Kasznik Ltd. had the following balances for its property, plant and
equipment accounts (in millions of pounds):
Dec. 31, 2015
Dec. 31, 2016
Property, plant & equipment at cost
£350
£366
Accumulated deprecation
(156)
(166)
Property, plant & equipment, net
£194
£200
During 2016, Kasznik Ltd. paid £56 million in cash to acquire
property and equipment, and this amount represents all the
acquisitions of property, plant and equipment for the period. The
company's income statement reveals...
At the end of the last accounting period, XYZ's net PPE
(Property, Plant and Equipment) was...
At the end of the last accounting period, XYZ's net PPE
(Property, Plant and Equipment) was $3.9m. Given that the gross
investment in PPE was $6.5m and that the depreciation expense for
last year was $650,000 what is the estimate of remaining useful
life of XYZ's asset base
Exercise 11-10 Disposal of property, plant, and equipment
[LO11-2] Mercury Inc. purchased equipment in 2016 at...
Exercise 11-10 Disposal of property, plant, and equipment
[LO11-2] Mercury Inc. purchased equipment in 2016 at a cost of
$315,000. The equipment was expected to produce 570,000 units over
the next five years and have a residual value of $30,000. The
equipment was sold for $160,500 part way through 2018. Actual
production in each year was: 2016 = 81,000 units; 2017 = 129,000
units; 2018 = 65,000 units. Mercury uses units-of-production
depreciation, and all depreciation has been recorded through the...
Chapter 10 Acquisition and Disposition of Property, Plant and
Equipment
On July 1, 2018, Forward
Corporation...
Chapter 10 Acquisition and Disposition of Property, Plant and
Equipment
On July 1, 2018, Forward
Corporation purchased a parcel of land as a factory site for
$185,000. An old building on the property was demolished and
construction began on a new warehouse that was completed on October
15, 2018. Costs incurred on the construction project are listed
below.
Cost of building
construction…………………………………
$620,000
Title
insurance…………………………………………………
1,500
Cost of constructing a
driveway……………………………….
8,000
Legal fees to purchase...
The following selected account balances relate to the property,
plant, and equipment accounts of Blossom Inc.:...
The following selected account balances relate to the property,
plant, and equipment accounts of Blossom Inc.:
2018
2017
Accumulated
depreciation—buildings
$335,000
$300,000
Accumulated
depreciation—equipment
144,000
95,000
Depreciation
expense—buildings
35,000
35,000
Depreciation
expense—equipment
60,000
49,000
Land
100,000
60,000
Buildings
700,000
700,000
Equipment
300,000
240,000
Gain on disposal (equipment)
4,000
0
Additional information:
1.
Purchased $40,000 of land for cash.
2.
Purchased $75,000 of equipment for a $10,000 down payment,
financing the remainder with a bank loan. Equipment was also sold
during...
The plant assets section of the comparative balance sheets of
Anders Company is reported below.
ANDERS...
The plant assets section of the comparative balance sheets of
Anders Company is reported below.
ANDERS COMPANY
Comparative Balance Sheets
2017
2016
Plant
assets
Equipment
$
285,000
$
375,000
Accum.
Depr.—Equipment
(142,000
)
(252,000
)
Equipment,
net
$
143,000
$
123,000
Buildings
$
485,000
$
505,000
Accum.
Depr.—Buildings
(163,000
)
(348,000
)
Buildings,
net
$
322,000
$
157,000
During 2017, equipment with a book value of $61,000 and an
original cost of $210,000 was sold at a loss of $7,200....
At December 31, 2017, Grand Company reported the following as
plant assets.
Land
$ 4,320,000
Buildings...
At December 31, 2017, Grand Company reported the following as
plant assets.
Land
$ 4,320,000
Buildings
$29,800,000
Less: Accumulated depreciation—buildings
10,570,000
19,230,000
Equipment
47,520,000
Less: Accumulated depreciation—equipment
4,910,000
42,610,000
Total plant assets
$66,160,000
During 2018, the following selected cash transactions
occurred.
April 1
Purchased land for $2,000,000.
May 1
Sold equipment that cost $840,000 when purchased on January 1,
2014. The equipment was sold for $504,000.
June 1
Sold land purchased on June 1, 2008 for $1,430,000. The land
cost...
Analyze property,
plant, and equipment transactions from a company’s financial
statements
P6-56B CrossCanada Transport Inc. (CC)...
Analyze property,
plant, and equipment transactions from a company’s financial
statements
P6-56B CrossCanada Transport Inc. (CC) provides
warehouse and distribution services. The excerpts that follow are
adapted from CC’s financial statements for fiscal year 2017.
(amounts in thousands)
October 31
Balance Sheet
2017
2016
Assets
Total current assets
$237,936
$208,530
Premises and equipment
5,941
5,246
Less Accumulated depreciation
(3,810)
(3,428)
Goodwill
4,752
4,304
For the Year Ended
October 31
Statement of Cash Flows (in millions)
2017
2016
Cash provided from...