Determine the book values of the assets

Question

Centralia Stores Inc. had property, plant, and equipment, net of accumulated depreciation, of $4,459,000 and intangible assets, net of accumulated amortization, of $673,000 at December 31, 2012. The company's 2012 statement of cash flows, prepared using the indirect method, included the following items:

a. The Cash Flows from Operating Activities section included three additions to net income:

(1) Depreciation expense of $672,000
(2) Amortization expense of $33,000
(3) Loss on the sale of equipment of $35,000

b. The Cash Flows from Operating Activities section also included a subtraction from net income for the gain on the sale of a copyright of $55,000.

c. The Cash Flows from Investing Activities section included outflows for the purchase of a building of $292,000 and $15,000 for the payment of legal fees to protect a patent from infringement.

d. The Cash Flows from Investing Activities section also included inflows from the sale of equipment of $315,000 and the sale of a copyright of $75,000.

Required:

1.Determine the book values of the assets that were sold during 2012.

Asset	Book Value at Time of Sale
Equipment	$
Copyright	$

2.Reconstruct the amount of property, plant, and equipment, net of accumulated depreciation, that was reported on the company's balance sheet at December 31, 2011.

Net book value at 12/31/11	$
Plus purchases during 2012
Less book value of equipment sold during 2012
Less 2012 depreciation
Net book value at 12/31/12	$

3.Reconstruct the amount of intangibles, net of accumulated amortization, that was reported on the company's balance sheet at December 31, 2011.

Net book value at 12/31/11	$
Plus payment of legal fees during 2012
Less book value of copyright sold during 2012
Less 2012 amortization
Net book value at 12/31/12	$