Learning Objective 8: Report cash flows for plant assets) Assume HowardManufacturing Corporation completed the following transactions:a. Sold a store building for $690,000. The building had cost Howard Manufacturing$1,200,000, and at the time of the sale, its accumulated depreciation totaled$510,000.b. Lost a store building in a fire. The building cost $300,000 and had accumulateddepreciation of $250,000. The insurance proceeds received by Howard Manufacturingtotaled $240,000.c. Renovated a store at a cost of $120,000 (cash).d. Purchased store fixtures for $80,000 (cash). The fixtures are expected to remain inservice for ten years and then be sold for $80,000. Howard Manufacturing uses thestraight-line depreciation method.For each transaction, show what Howard Manufacturing would report for investing activities onits statement of cash flows. Show negative amounts in parentheses.

Learning Objective 8: Report cash flows for plant assets) Assume HowardManufacturing Corporation completed the following transactions:a. Sold a store building for $690,000. The building had cost Howard Manufacturing$1,200,000, and at the time of the sale, its accumulated depreciation totaled$510,000.b. Lost a store building in a fire. The building cost $300,000 and had accumulateddepreciation of $250,000. The insurance proceeds received by Howard Manufacturingtotaled $240,000.c. Renovated a store at a cost of $120,000 (cash).d. Purchased store fixtures for $80,000 (cash). The fixtures are expected to remain inservice for ten years and then be sold for $80,000. Howard Manufacturing uses thestraight-line depreciation method.For each transaction, show what Howard Manufacturing would report for investing activities onits statement of cash flows. Show negative amounts in parentheses.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 14M

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(Learning Objective 8: Report cash flows for plant assets) Assume AlfonsoCorporation completed the following transactions:a. Sold a store building for $670,000. The building had cost Alfonso $1,600,000, and at thetime of the sale, its accumulated depreciation totaled $930,000.b. Lost a store building in a fire. The building cost $300,000 and had accumulateddepreciation of $220,000. The insurance proceeds received by Alfonso totaled $200,000.c. Renovated a store at a cost of $140,000 (cash).d. Purchased store fixtures for $110,000 (cash). The fixtures are expected to remain inservice for ten years and then be sold for $110,000. Alfonso uses the straight-linedepreciation method.For each transaction, show what Alfonso would report for investing activities on its statement ofcash flows. Show negative amounts in parentheses.
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