Additions to non current assets (video below)

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 

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