Question

Sab AV Aa-2-A-EEE Shapes Arrange Font Paragraph Drawing Question 2 You are reviewing the financial statements of three companies in the same industry. Specifically, you interested in the transactions surrounding capital assets during the past year. The following information is available for the three companies. Compute the unknowns Sunlight Co. $850,500 Photo Co. $712,200 Synthesis Co. S488,300 960,000 706,800 284.400 Beginning capital assets, net of depreciation Ending capital assets net of depreciation Depreciation expense Gain (loss) on sale of capital 65,200 5,500 49,300 (b) (0) (16,800) assets 230,600 (a) 128.000 72,500 55.600 184,900 Costs of capital assets acquired Proceeds from sale of capital assets Note

Answer 1

Sunlight Co.	Part 1
Beginning capital assets, net of depreciation	$       850,500
Add: Cost of capital assets acquired	$       230,600
Total assets	$    1,081,100
Less: depreciation expense	$          65,200
Less: book value of capital assets sold (1081100-65200-960000)	$          55,900
Ending capital assets, net of depreciation	$       960,000
Proceeds from sale of capital assets (5500+55900)	$          61,400
Less: Book value of capital assets sold	$          55,900
Gain (loss) on sale of capital	$            5,500
Photo Co.	Part 2
Beginning capital assets, net of depreciation	$       712,200
Add: Cost of capital assets acquired	$       128,000
Total assets	$       840,200
Less: depreciation expense	$          49,300
Less: book value of capital assets sold (840200-49300-706800)	$          84,100
Ending capital assets, net of depreciation	$       706,800
Proceeds from sale of capital assets	$          72,500
Less: Book value of capital assets sold	$          84,100
Gain (loss) on sale of capital	$       (11,600)
Synthesis Co.	Part 3
Proceeds from sale of capital assets	$       184,900
Less: Book value of capital assets sold (184900+16800)	$       201,700
Gain (loss) on sale of capital	$       (16,800)
Beginning capital assets, net of depreciation	$       488,300
Add: Cost of capital assets acquired	$          55,600
Total assets	$       543,900
Less: depreciation expense (543900-201700-284400)	$          57,800
Less: book value of capital assets sold	$       201,700
Ending capital assets, net of depreciation	$       284,400