The Activity in the Plant Assets and Related Accumulated Depreciation

question 61

Essay

The activity in the Plant Assets and related Accumulated Depreciation accounts for 2009 is shown below.In addition,the income statement shows a gain on sale of plant assets of $16,000.
$\begin{array}{|lr|lr|}\hline \text { Plant Assets } && \text { Accumulated Depreciation }\\\hline \text { Beginning balance, } 2009 & \$ 234,000 & \text { Beginning balance, } 2009 & \$ 124,000 \\\text { Purchases } & 120,000 & 2009 \text { Depreciation } & 36,000 \\\text { Disposals } & (82,000) & \text { Disposals } & (26,000) \\\text { Ending balance, } 2009 & \$ 272,000 & \text { Ending balance, } 2009 & \$ 134,000 \\\hline\end{array}$ Based on the information given,compute the amounts to be shown and indicate how they would appear on the statement of cash flows.Assume that the indirect method is being used and that the plant assets were purchased for cash.

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