MC Qu. 12-184 A company bought.. A company bought $300,000 of equipment with an expected life of 11 years and no residual value. After 7 years the company sold the equipment for $94,500. If the company uses straight-line depreciation and the Indirect method is used to determine cash flows from operating activitiles, which of the following reflects how the sale of the equipment would be reported in the statement of cash flows? Multiple Cholce $94,500 Is recorded as a cash inflow from Investing activitiles and $14,591 Is subtracted to convert net income to net cash flow provided by operating activities. $94.500 is recorded as a cash inflow from investuing activitiles and no other sections of the statement are affected. $94,500 Is recorded as a cash inflow from operating activitiles. $94,500 is recorded as a cash Inflow from Investing activities and $14,591 Is added to convert net Income to net cash flow provided by operating activities.

MC Qu. 12-184 A company bought.. A company bought $300,000 of equipment with an expected life of 11 years and no residual value. After 7 years the company sold the equipment for $94,500. If the company uses straight-line depreciation and the Indirect method is used to determine cash flows from operating activitiles, which of the following reflects how the sale of the equipment would be reported in the statement of cash flows? Multiple Cholce $94,500 Is recorded as a cash inflow from Investing activitiles and $14,591 Is subtracted to convert net income to net cash flow provided by operating activities. $94.500 is recorded as a cash inflow from investuing activitiles and no other sections of the statement are affected. $94,500 Is recorded as a cash inflow from operating activitiles. $94,500 is recorded as a cash Inflow from Investing activities and $14,591 Is added to convert net Income to net cash flow provided by operating activities.

Name: MC Qu. 12-184 A company bought.A company bought $300,000 of equipment
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Description: MC Qu. 12-184 A company bought.A company bought $300,000 of equipment with an expected life of 11 years and no residual value. After 7 yearsthe company sold the equipment for $94,500. If the company uses straight-line depreclation and the Indirectme

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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