Question - Margaret River Ltd provides you with the following information about its property, plant and equipment.
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Operating balance of property, plant and equipment
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$500,000
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Closing balance of property, plant and equipment
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$650,000
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Depreciation expense for the year
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$50,000
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Operating balance of accumulated depreciation
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$200,000
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Closing balance of accumulated depreciation
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$210,000
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Gain on sale of property, plant and equipment
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$20,000
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Carrying value of property, plant and equipment that has been disposed of
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$90,000
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Required: You are to determine how much cash has been received from the disposal of property, plant and equipment, and how much cash has been used to acquire property, plant and equipment throughout the year.