Question: On September 3 0 , Year 7 , Pristine Enterprises sold a large piece of equipment to Caliente Company for $ 6 0 , 0

On September 30, Year 7, Pristine Enterprises sold a large piece of equipment to Caliente Company for $60,000. Caliente paid $6,000 as a down payment and agreed to make annual payments of $3,600 plus interest starting in Year 8. The equipment was originally purchased by Pristine on October 1 of Year 1 for $300,000. It was expected to have a useful life of 8 years. Pristine uses the straight line method of depreciation. How would the equipment sale be reported in Pristine's Statement of cash flows for Year 7?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!