An Analysis of Changes in Selected Statement of Financial Position

question 72

Multiple Choice

An analysis of changes in selected statement of financial position accounts of Johnson Company shows the following for the current year:
$\begin{array} { | l | l | } \hline \text { Property, Plant, and Equipment accounts: } & \\\hline \text { Debit entries to asset accounts } & \$ 160,000 \\\hline \text { Credit entries to asset accounts } & \$ 118,000 \\\hline \begin{array} { c } \text { Debit entries to accumulated depreciation accounts } \\\text { (resulting from sale of PPE assets) }\end{array} & \$ 91,000 \\\hline \begin{array} { c } \text { Credit entries to accumulated depreciation accounts } \\\text { (representing depreciation for the current year) }\end{array} & \$ 107,000 \\\hline\end{array}$ Johnson 's income statement for the current year includes a $14,000 loss on disposal of property, plant, and equipment. All payments and proceeds relating to purchase or sale of property, plant, and equipment were in cash.

-Total cash proceeds received by Johnson from sales of property, plant, and equipment during the current year amounted to:

• A) $13,000.
• B) $104,000.
• C) $195,000.
• D) $41,000.

---

Definitions:

Simplify

To alter a complex equation or expression into a simpler form that retains the original meaning or value.

Like Terms

Terms in an algebraic expression that have the same variable raised to the same power and can be combined.

Evaluate

To determine the value of an expression by computing its numerical value.

Calculate

Perform mathematical operations to find a numerical answer.