The records of Count Bases Pizzas showed the following.
30 June 13 30 June 14
Pizza ovens and equipment $49 000 $53 000
Accumulated depreciation ovens and equipment 10 000 12 000
Cost of equipment sold 5000
Carrying value of equipment sold 3000
Proceeds of sale of equipment 4500
The amount of depreciation expense on ovens and equipment that would appear in a note attached to a statement of cash flows reconciling profit with cash flow from operations is:

Question

Quizplus · Accepted Answer

The depreciation expense is calculated as the change in accumulated depreciation from June 13 to June 14, which is $12,000 - $10,000 = $2,000. Additionally, since the carrying value of the equipment sold was $3,000, the total depreciation expense is $2,000 + $3,000 = $5,000.

The Records of Count Bases Pizzas Showed the Following