Question

Use the following information for the Quick Study below.

[The following information applies to the questions displayed below.]

The plant assets section of the comparative balance sheets of Anders Company is reported below.

ANDERS COMPANY
Comparative Balance Sheets
			2019				2018
Plant assets
Equipment		$	270,000			$	360,000
Accumulated depreciation—Equipment			(136,000	)			(246,000	)
Equipment, net		$	134,000			$	114,000
Buildings		$	470,000			$	490,000
Accumulated depreciation—Buildings			(154,000	)			(339,000	)
Buildings, net		$	316,000			$	151,000

QS 12-11 Computing investing cash flows LO P3

During 2019, a building with a book value of $88,000 and an original cost of $390,000 was sold at a gain of $78,000.

1. How much cash did Anders receive from the sale of the building?
2. How much depreciation expense was recorded on buildings during 2019?
3. What was the cost of buildings purchased by Anders during 2019?

1.	Cash received from the sale of building
2.	Depreciation expense
3.	Purchase of building

Answer 1