Question

MC Qu. 167 On its December 31, 2017, balance sheet... On its December 31, 2017, balance sheet, Calgary Industries reports equipment of $470,000 and accumulated depreciation of $94,000. During 2018, the company plans to purchase additional equipment costing $100,000 and expects depreciation expense of $40,000. Additionally, it plans to dispose of equipment that originally cost $52,000 and had accumulated depreciation of $7,600. The balances for equipment and accumulated depreciation, respectively, on the December 31, 2018 budgeted balance sheet are:

Answer 1

Answer:

$518,000 and $136,400

Explanation:

Calculation to determine what The balances for equipment and accumulated depreciation, respectively, on the December 31, 2018 budgeted balance sheet are:

EQUIPMENT

Equipment as on 1st Jan,2018 $470000

Add: Equipment Purchased $100000

Less: Equipment Sold ($52000)

Equipment Balance as on 31st Dec,2018 $518,000

ACCUMULATED DEPRECIATION

Accumulated Depreciation as on 1st Jan $94000

Add: Depreciation for the year $50000

Less: Depreciation of asset sold ($7600)

Accumulated Depreciation as on 31st Dec,18 $136,400

Therefore The balances for equipment and accumulated depreciation, respectively, on the December 31, 2018 budgeted balance sheet are:$518,000 and $136,400