Phosphoric Company reported capital assets, net of accumulated depreciation, on January 1, 2013, at $645,000 and $732,500 on December 31, 2013. The income statement showed depreciation of $48,300 and a $5,600 loss on sale of capital assets. Phosphoric Company acquired $213,000 of capital assets during the year. The proceeds from the sale of capital assets were:

Question

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The change in net capital assets is $87,500 ($732,500 - $645,000). Adding back depreciation of $48,300 gives $135,800. Subtracting the acquisition of $213,000 gives a net sale of $77,200. Considering the $5,600 loss, the proceeds were $71,600.

Phosphoric Company Reported Capital Assets, Net of Accumulated Depreciation, on January