Reference no: EM132865558
Problem - Reconstruct Net Book Values Using Statement of Cash Flows - Centralia Stores Inc. had property, plant, and equipment, net of accumulated depreciation, of $4,459,000 and intangible assets, net of accumulated amortization, of $673,000 at December 31, 2016. The company's 2016 statement of cash flows, prepared using the indirect method, included the following items:
a. The Cash Flows from Operating Activities section included three additions to net income:
(1) Depreciation expense of $672,000
(2) Amortization expense of $33,000
(3) Loss on the sale of equipment of $35,000
b. The Cash Flows from Operating Activities section also included a subtraction from net income for the gain on the sale of a copyright of $55,000.
c. The Cash Flows from Investing Activities section included outflows for the purchase of a building of $292,000 and $15,000 for the payment of legal fees to protect a patent from infringement.
d. The Cash Flows from Investing Activities section also included inflows from the sale of equipment of $315,000 and the sale of a copyright of $75,000.
Required -
1. Determine the book values of the assets that were sold during 2016.
2. Reconstruct the amount of property, plant, and equipment, net of accumulated depreciation, that was reported on the company's balance sheet at December 31, 2015.
3. Reconstruct the amount of intangibles, net of accumulated amortization, that was reported on the company's balance sheet at December 31, 2015.