$10$

Melp

Exercise $8-12$A $($Algo$)$ Effect of the disposal of plant assets on the financial statements LO $8-5$

bints

Uno Company sold office equipment with a cost of $$41,750$ and accumulated depreciation of $$38,062$ for $$5,760.$

Required

eBook

Hint

a$.$ What is the book value of the asset at the time of sale?

b$.$ What is the amount of gain or loss on the disposal?

Print

Note: Loss amount should be indicated with a minus sign.

c$.$ How would the sale affect net income $($increase$,$ decrease, no effect$)$ and by how much?

d$.$ How would the sale affect the amount of total assets shown on the balance sheet $($increase$,$ decrease, no effect$)$ and by how much?

e$.$ How would the event affect the statement of cash flows $($inflow$,$ outflow, no effect$)$ and in what section?

$\backslash$table$[[$a$.$ Book value,$],[$b$.$ Gain $($loss$)$ on sale,,,$],[$c$.$ Net income would,,by$,],[$d$.$ Total assets would,,by$,],[$e$.$ Cash flow would,,by$,],[$Section$,,,]]$