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Three-Eyed Raven Ltd
Three-Eyed Raven Ltd. reported the following at December 31, 2016 (in thousands):
2016 2015
From the comparative balance sheet:
Property and equipment, net $11,150 $9,590
Long-term notes payable 4,400 3,080
From the statement of cash flows:
Depreciation $1,920
Capital expenditures (4,130)
Proceeds from sale of property and equipment 770
Proceeds from issuance of long-term note payable 1,190
Payment of long-term note payable (110)
Issuance of common shares 383
Determine the following items for Three Eyed Raven Ltd. During 2016:
- Gain or loss on the sale of property and equipment.
- Amount of long-term debt issued for something other than cash.
Expert Solution
a.)
Given,
Property and equipment, net (2015)= 9590
Capital expenditures= 4130
Depreciation= 1920
Property and equipment, net (2016)= 11150
Proceeds from sale of property and equipment= 770
So,
Value of Property that should be if no asset was sold in 2015:
= 9590+ 4130- 1920
= 11800
Loss on the sale of property and equipment:
= 11800- 11150
= 650
Gain on the sale of property and equipment:
= 770-650
=120
b.)
Amount of long-term debt issued for something other than cash is 1190
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