Rhonda Company reported $70,000 of net income for 2020. During the year, machinery costing $10,000 and with accumulated depreciation of $8,000 was sold at a loss of $500. Land and machinery were purchased during the year for cash. Selected account information follows: 2020 December 31 January 1 Land $45,000 $32,000 Machinery 28,000 20,000 Accumulated Depreciation: Machinery 7,000 12,000 Required: Compute the net cash from investing activities for 2020 using the visual inspection method. Use the minus sign to indicate cash out flow.
Rhonda Company reported $70,000 of net income for 2020. During the year, machinery costing $10,000 and with accumulated depreciation of $8,000 was sold at a loss of $500. Land and machinery were purchased during the year for cash. Selected account information follows: 2020 December 31 January 1 Land $45,000 $32,000 Machinery 28,000 20,000 Accumulated Depreciation: Machinery 7,000 12,000 Required: Compute the net cash from investing activities for 2020 using the visual inspection method. Use the minus sign to indicate cash out flow.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 5MC: During 2019, White Company determined that machinery previously depreciated over a 7-year life had a...
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Rhonda Company reported $70,000 of net income for 2020. During the year, machinery costing $10,000 and with
| 2020 | ||
| December 31 | January 1 | |
| Land | $45,000 | $32,000 |
| Machinery | 28,000 | 20,000 |
| Accumulated Depreciation: Machinery | 7,000 | 12,000 |
Required:
Compute the net cash from investing activities for 2020 using the visual inspection method. Use the minus sign to indicate cash out flow.
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