标题: Who can figure this out? FSA question [打印本页] 作者: smuggycfa 时间: 2013-4-11 09:58 标题: Who can figure this out? FSA question
Had a hard time on this one:
An analyst gathered the following information regarding the longlived assets of a company ($000):
20X2 20X1
Land $75 $60
Plant and equipment 640 592
715 652
Less: Accumulated 224 188
depreciation
Property, plant and $491 $464
equipment – net
Depreciation Expense $42
Capital expenditures 82
Proceeds from sale of equipment 18
The gain or loss from the sale of longlived assets during 20X2 was closest to ($000):
a. $5 gain.
b. $5 loss.
c. $13 gain.
d. $13 loss.
Answer : A作者: svgleeson 时间: 2013-4-11 10:01
715 652 = 63 which is the net change in FA
Add back the depreciation of 42, so 63 + 42 = 105. 82 was spent on new FA, so subtract this from 105, leaving 23. Of this 23 amount, subtract the proceeds from the sale of FA (18) which leaves you with 5 which is the net gain
weird question really作者: jarobi04 时间: 2013-4-11 10:02
Mihaz, could you explain the logic behind the way you calculated net value of assets without the sale? everything else made sense to me. thanks.作者: RealEstate_CFA 时间: 2013-4-11 10:02
The follg formula ALWAYS WORKS.
PPE Net End = PPE Net Begin + Purchases Depr Sales
Sales above is the Book Value of the Sales.
Substituting
491=464+8242Sales
Sales=13
you are given you sold it for 18.
So you made a 1813= 5$ gain.
Ans A作者: meghanjackson 时间: 2013-4-11 10:02
Sure. All the data is given. You add capital expenditures and substract depreciation.作者: spartan1 时间: 2013-4-11 10:03
Much appreciated guys!
CP, your explanation is much more straightforward than Stalla. They presented with a T a/c which really drives me nuts.
