ABC Co’s non-current assets had carrying amounts of $92,100 and $121,250 at the beginning and end of the year respectively. Depreciation for the year was $12,150. Assets originally costing $8,750, with a carrying amount of $4,525 were sold in the year for $3,750.
What were the additions to non-current assets in the year?
Answer
Ending carrying amount = beginning carrying amount + purchase – depreciation – carrying amount of fixed asset disposal
Purchase = Ending carrying amount + depreciation + carrying amount of fixed asset disposal- beginning carrying amount = 121,250 + 12,150 + 4,525 – 92,100 = $45,825