Equipment transaction and cash flow reporting Dec. 31, 20X4Dec. 31, 20X3 Property, Plant & Equipment: Land..$94,000...$94,000 Equipment652,000527,000
Question:
Equipment transaction and cash flow reporting
Dec. 31, 20X4……………………………………Dec. 31, 20X3
Property, Plant & Equipment:
Land………………………..$94,000…………………...$94,000
Equipment…………………………652,000……………527,000
Less: Accumulated depreciation….-316,000…………...-341,000
New equipment purchased during 20x4 totaled $280,000. The 20x4 income statement disclosed equipment depreciation expense of $41,000 and a $9,000 loss on the sale of equipment.
a. Determine the cost and accumulated depreciation of the equipment sold during 20X4.
b. Determine the selling price of the equipment sold.
c. Show how the sale of equipment would appear on a statement of cash flows prepared by using the indirect method.
Expert Answer:
Financial Accounting Theory and Analysis Text and Cases
ISBN: 978-1118582794
11th edition
Authors: Richard G. Schroeder, Myrtle W. Clark, Jack Cathey
