Question

Equipment that cost $871000 and had a book value of $387000 was sold for $457000. Data from the comparative balance sheets are: 12/31/21 12/31/20 Equipment $5410000 $4879000 Accumulated Depreciation 1654000 1500000 Equipment purchased during 2021 was $1402000. $531000. $911000. $821000.

Answer 1

a. $1,402,000

Step-by-step explanation:

Equipment purchased during 2021 = Cost of equipment on 12/31/2021 - (Cost of equipment on 12/31/2020 - Cost of equipment sold)

Equipment purchased during 2021 = $5,410,000 - ($4,879,000 - $871,000)

Equipment purchased during 2021 = $5,410,000 - $4,008,000

Equipment purchased during 2021 = $1,402,000