Tri- Square Company reported plant assets, net of accumulated depreciation, on January 1, 2008, at $625,300 and $713,200 on December 31, 2008. The income statement showed a depreciation expense of $47,900 and a $5,100 loss on sale of plant assets. Tri- Square Company acquired $209,000 of plant assets during the year. The proceeds from the sale of plant assets were:

Question

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The change in net plant assets is $713,200 - $625,300 = $87,900. Adding back depreciation of $47,900 gives $135,800. Subtracting the acquisition of $209,000 gives a net sale of $73,200. Considering the $5,100 loss, the proceeds from the sale were $73,200 - $5,100 = $68,100.

Tri- Square Company Reported Plant Assets, Net of Accumulated Depreciation