ACCA FA · Chapter 12 · Question 4 of 10
The carrying amount of a company's property, plant and equipment was $240,000 at the start of the year and $286,000 at the end. During the year, depreciation was $32,000, assets with a carrying amount of $15,000 were sold, and a property was revalued upwards by $20,000. What was the cash spent on purchasing property, plant and equipment?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) $73,000
Explanation
Opening $240,000 + revaluation $20,000 - depreciation $32,000 - disposals $15,000 + purchases = closing $286,000. Purchases = $286,000 - $240,000 - $20,000 + $32,000 + $15,000 = $73,000. Ignoring the revaluation gives $93,000, and adding the disposal instead of deducting it gives $43,000.
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