CIMA BA3 · Chapter 12 · Question 3 of 10
The carrying amount of a company's property, plant and equipment was $140,000 at the start of the year and $178,000 at the end. Depreciation for the year was $22,000 and equipment with a carrying amount of $9,000 was sold. There were no revaluations. How much cash was spent on purchasing property, plant and equipment?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) $69,000
Explanation
Opening $140,000 + additions - depreciation $22,000 - disposals $9,000 = closing $178,000. Additions = $178,000 - $140,000 + $22,000 + $9,000 = $69,000.
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