Calculate the amount of cash spent for equipment

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Reference no: EM13943788

DETERMINING CASH FLOWS FROM INVESTING ACTIVITIES

Burns Company's 2009 and 2008 balance sheets presented the following data for equipment:

	12/31/2009	12/31/2008
Equipment	$260,000	$225,000
Accumulated depreciation	115,000	92,000
Book value	$145,000	$133,000

During 2009, equipment costing $35,000 with accumulated depreciation of $30,000 was sold for cash, producing a $4,400 gain.

Required:

1. Calculate the amount of depreciation expense for 2009.

2. Calculate the amount of cash spent for equipment during 2009.

3. Calculate the amount that should be included as a cash inflow from the sale of equipment.

Reference no: EM13943788

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