Question

On its December 31, 2014, balance sheet, Calgary Industries reports equipment of $370,000 and accumulated depreciation of $74,000. During 2015, the company plans to purchase additional equipment costing $80,000 and expects depreciation expense of $30,000. Additionally, it plans to dispose of equipment that originally cost $42,000 and had accumulated depreciation of $5,600. The balances for equipment and accumulated depreciation, respectively, on the December 31, 2015 budgeted balance sheet are:Group of answer choices$328,000; $74,000.$450,000; $98,400.$450,000; $104,000.$408,000; $104,000.$408,000; $98,400.

Answer 1

Answer:

$408,000; $98,400; $309,600

Explanation:

The solution of balances for equipment and accumulated depreciation is provided below:-

To reach at  balances for equipment and accumulated depreciation we need to deduct the accumulated depreciation from cost of equipment

Particulars          Cost of equipment     Accumulated   Net income

                                                               Depreciation

Equipment          $370,000                      $74,000        $296,000

                                                                             ($370,000 - $74,000)

Purchase of

equipment           $80,000                      $30,000        $50,000

                                                                               ($80,000 - $30,000)

Equipment

dispose off       $42,000                           $5,600           $36,400

                                                                               ($42,000 - $5,600)

Budgeted balance

of equipment    $408,000                    $98,400     $309,600

                                                                                   ($408,000 - $98,400)

therefore as per the question the option is not available so, the right answer is $408,000; $98,400; $309,600.