Question: During the current year, Palmer Company purchased equipment costing $ 1 0 0 , 0 0 0 by signing a 2 - year promissory note.

During the current year, Palmer Company purchased equipment costing $100,000 by signing a 2-year promissory note. In its statement of cash flows, Palmer should
Multiple choice question.
not disclose any information because no cash was paid.
recognize a financing inflow and an investing outflow.
disclose information in the noncash investing and financing section.

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