Schwerin Corporation reports the following on its 2005 financial statements. $\begin{array}{lr}&2004&2005\
\text { From statement of cash flows: }\
\text { Cash proceeds from sale of equipment } && \$ 100 \text { million } \
\text { Cash outflow for purchase of equipment } && 170 \text { million } \
\text { Depreciation } && 50 \text { million } \
\text { Gain from sale of equipment } && 40 \text { million }
\end{array}$
-If the beginning and ending property, plant, and equipment are $500 million and $550 million respectively, the gross book value of equipment sold was:

Question

Quizplus · Accepted Answer

The gross book value of the equipment sold can be calculated by adding the gain from the sale to the cash proceeds from the sale. The gain from the sale of equipment is $40 million, and the cash proceeds from the sale are $100 million. Therefore, the gross book value of the equipment sold is $40 million + $100 million = $140 million.

Schwerin Corporation Reports the Following on Its 2005 Financial Statements