Question 3
The following information is taken from the financi
al statements of an entity:
20x6
20x5
Property, plant and equipment $4,100,000
$3,600,000
Accumulated depreciation (1,400,000)
(1,050,000)
Depreciation expense
650,000
Gain on disposal of PPE
35,000
The asset disposed of had a cost of $400,000.
Calculate (i) the cost of the new PPE purchased dur
ing the year and (ii) the proceeds on
disposal on sale of PPE.