FREE Trial

The sale of equipment for an amount of cash greater than the carrying value of the equipment

Question:

The sale of equipment for an amount of cash greater than the carrying value of the equipment results in a cash receipt equal to the carrying value of the equipment plus the gain on the sale, which appears in income. How might the accountant treat this transaction in the statement of cash flows? Consider both the direct and indirect methods.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 60% (10 reviews)

Direct Method The accountant classifies the entire cash proceeds from the equipment sale as an ...View the full answer


answer-question-section
Answered By
tutor-profile-image
Sushil uraon
It is with great humility and pride that I introduce myself to all of you. I am sushil uraon, an online Math tutor. I have teaching experience in Math for more than two years.Since I have taught students ranging from ages 8 to 16, I am well aware of all levels of mathematics, and can quite comfortably incorporate technology into regular lessons. I believe this skill will help students in learning through both conventional means and modern ways.
0.00 0 Reviews 10+ Question Solved
Related Book For  book-img-for-question
Financial Accounting An Introduction to Concepts, Methods and Uses

Financial Accounting An Introduction to Concepts, Methods and Uses

ISBN: 978-1133591023

14th edition

Authors: Roman L. Weil, Katherine Schipper, Jennifer Francis

See More Books
Question Posted:
See More Questions

Students also viewed these Accounting questions

Cleaning Data For Effective Data Science Doing The Other 80 Of The Work With Python R And Command Line Tools 1st Edition - ISBN: 1801071292 - Free Book