Question

At the end of 2017 the original cost (i.e., before depreciation) of IBM “property, plant and equipment” (PPE) was $32,331. At the end of 2018 the original cost was $32,460. What was the original cost of the PPE that IBM sold during 2018.

	2018	2017	2016
Depreciation	3127	3021	2837
Payment for Property, Plant and Equipment	(3395)	(3229)	(3567)
Proceeds from disposition of Property, Plant and Equipment	248	460	424

Answer 1

Remarks	Particulars	amount
a	Cost at end of 2017	32,331
b	Purchase in 2018	3,395
c= a+b	Closing balance if no other transaction	35,726
d	Actual original cost	32,460
e=c-d	Original cost of equipments sold	3,266