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ProComp Inc.

Price: $1.99

The property, plant, and equipment section of ProComp Inc.’s comparative balance
sheet follows:

  Dec. 31, 20X4 Dec. 31, 20X3
Land  94,000  94,000
Equipment  652,000  527,000
Less: Accumulated depreciation  (316,000)  (341,000)

New equipment purchased during 20X4 totaled $280,000. The 20X4 income statement
disclosed equipment depreciation expense of $41,000 and a $9,000 loss on the
sale of equipment.

a. Determine the cost and accumulated depreciation of the equipment sold during 20X4.
b. Determine the selling price of the equipment sold.
c. Show how the sale of equipment would appear on a statement of cash flows prepared
by using the indirect method.

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