Burg Company’s beginning balance in its Property, Plant, and Equipment (PP&E) account was $700,000 on January 1, 2017. The PP&E account had an ending balance of $1,000,000 on December 31, 2017. Accumulated Depreciation on the equipment had a beginning balance of $300,000 and an ending balance of $420,000. Depreciation expense during 2017 was $200,000. Strasburg sold PP&E with a net value of $50,000 during 2017, and reported a gain on the sale of $14,000. How much cash did Strasburg receive from the sale of PP&E? How much cash did Strasburg pay to purchase new PP&E?
Burg Company’s beginning balance in its Property, Plant, and Equipment (PP&E) account was $700,000 on January 1, 2017. The PP&E account had an ending balance of $1,000,000 on December 31, 2017. Accumulated Depreciation on the equipment had a beginning balance of $300,000 and an ending balance of $420,000. Depreciation expense during 2017 was $200,000. Strasburg sold PP&E with a net value of $50,000 during 2017, and reported a gain on the sale of $14,000. How much cash did Strasburg receive from the sale of PP&E? How much cash did Strasburg pay to purchase new PP&E?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Burg Company’s beginning balance in its Property, Plant, and Equipment (PP&E) account was $700,000 on January 1, 2017. The PP&E account had an ending balance of $1,000,000 on December 31, 2017.
How much cash did Strasburg receive from the sale of PP&E?
How much cash did Strasburg pay to purchase new PP&E?
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