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Question
The Capitals Company has provided you the following information pertaining to the year ending December 31, 2012:
Equipment costing $25,000 was acquired in exchange for common stock.
Equipment with an original cost of $57,500 and a book value of $5,000 was scrapped.
Equipment was purchased in exchange for cash.
Equipment with a book value of $39,000 was sold resulting in a $14,000 gain. The accumulated depreciation at the time of the sale was $67,000.
Required: 1. Determine the cash paid for equipment purchases during 2012.
2. Determine the depreciation expense for 2012.
Answer
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Related questions
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