Question

On its December 31, 2014, balance sheet, Calgary Industries reports equipment of $370,000 and accumulated depreciation of $74,000. During 2015, the company plans to purchase additional equipment costing $80,000 and expects depreciation expense of $30,000. Additionally, it plans to dispose of equipment that originally cost $42,000 and had accumulated depreciation of $5,600. The balances for equipment and accumulated depreciation, respectively, on the December 31, 2015 budgeted balance sheet are:Group of answer choices$328,000; $74,000.$450,000; $98,400.$450,000; $104,000.$408,000; $104,000.$408,000; $98,400.

Answer 1

$408,000; $98,400; $309,600

Step-by-step explanation:

The solution of balances for equipment and accumulated depreciation is provided below:-

To reach at balances for equipment and accumulated depreciation we need to deduct the accumulated depreciation from cost of equipment

Particulars Cost of equipment Accumulated Net income

Depreciation

Equipment $370,000 $74,000 $296,000

($370,000 - $74,000)

Purchase of

equipment $80,000 $30,000 $50,000

($80,000 - $30,000)

Equipment

dispose off $42,000 $5,600 $36,400

($42,000 - $5,600)

Budgeted balance

of equipment $408,000 $98,400 $309,600

($408,000 - $98,400)

therefore as per the question the option is not available so, the right answer is $408,000; $98,400; $309,600.