The records of Angelo's Pizza showed the following:
$$\begin{array} { l r r }
& \text { 30 June 18 } & \text { 30 June } 19 \
\text { Pizza ovens and equipment } & \$ 39000 & \$ 43000 \
\text { Accumulated depreciation ovens and equipment } & 6000 & 9000 \
\text { Cost of equipment sold } & & 6000 \
\text { Carrying value of equipment sold } & & 1000 \
\text { Proceeds of sale of equipment } & & 4500
\end{array}$$
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

The records of Angelo's Pizza showed the following:
$$\begin{array} { l r r } 
& \text { 30 June 18 } & \text { 30 June } 19 \
\text { Pizza ovens and equipment } & \$ 39000 & \$ 43000 \
\text { Accumulated depreciation ovens and equipment } & 6000 & 9000 \
\text { Cost of equipment sold } & & 6000 \
\text { Carrying value of equipment sold } & & 1000 \
\text { Proceeds of sale of equipment } & & 4500
\end{array}$$
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:

Quizplus · Accepted Answer

The depreciation expense can be calculated by taking the change in accumulated depreciation and adjusting for the sale of equipment. The accumulated depreciation increased from $6,000 to $9,000, a change of $3,000. However, the cost of equipment sold was $6,000 with a carrying value of $1,000, indicating a $5,000 difference due to depreciation on the sold equipment. Therefore, the total depreciation expense is $3,000 (change in accumulated depreciation) + $5,000 (depreciation on sold equipment) = $8,000.

The Records of Angelo's Pizza Showed the Following The Amount of Depreciation Expense on Ovens and Equipment That