a. Equipment costing $6,000 with accumulated depreciation of $2,000 sold for $5,700 cash. b. Gain on the sale in "a" is $1,700. O The operating section would include a subtract of $1,700 to back out the gain; and the investing section would include an inflow of $5,700. O The operating section would include an add of $1,700 to back out the gain; and the investing section would include an inflow of $6,000. ○ The operating section would include a subtract of $1,700 to back out the gain; and the financing section would include an inflow of $5,700. O The operating section would include a subtract of $1,700 to back out the gain; and the investing section would include an inflow of $2,000.
a. Equipment costing $6,000 with accumulated depreciation of $2,000 sold for $5,700 cash. b. Gain on the sale in "a" is $1,700. O The operating section would include a subtract of $1,700 to back out the gain; and the investing section would include an inflow of $5,700. O The operating section would include an add of $1,700 to back out the gain; and the investing section would include an inflow of $6,000. ○ The operating section would include a subtract of $1,700 to back out the gain; and the financing section would include an inflow of $5,700. O The operating section would include a subtract of $1,700 to back out the gain; and the investing section would include an inflow of $2,000.
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
Problem 1.3AIC: Estimate the average total estimated useful life of depreciable property, plant, and equipment....
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![a. Equipment costing $6,000 with accumulated depreciation of $2,000 sold for $5,700 cash.
b. Gain on the sale in "a" is $1,700.
O The operating section would include a subtract of $1,700 to back out the gain; and the investing
section would include an inflow of $5,700.
O The operating section would include an add of $1,700 to back out the gain; and the investing section
would include an inflow of $6,000.
○ The operating section would include a subtract of $1,700 to back out the gain; and the financing
section would include an inflow of $5,700.
O The operating section would include a subtract of $1,700 to back out the gain; and the investing
section would include an inflow of $2,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5a73a23c-7278-403c-9e2e-1f681a1e3466%2F745ccb8e-2841-4407-a125-3d8e409848aa%2Fk82585_processed.jpeg&w=3840&q=75)
Transcribed Image Text:a. Equipment costing $6,000 with accumulated depreciation of $2,000 sold for $5,700 cash.
b. Gain on the sale in "a" is $1,700.
O The operating section would include a subtract of $1,700 to back out the gain; and the investing
section would include an inflow of $5,700.
O The operating section would include an add of $1,700 to back out the gain; and the investing section
would include an inflow of $6,000.
○ The operating section would include a subtract of $1,700 to back out the gain; and the financing
section would include an inflow of $5,700.
O The operating section would include a subtract of $1,700 to back out the gain; and the investing
section would include an inflow of $2,000.
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