Fully depreciated equipment costing $50,000 is discarded. What is the effect of the transaction on cash flows if (a) $15,000 cash is received for the equipment, (b) no cash is received for the equipment?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 8DQ: Fully depreciated equipment costing 50,000 was discarded. What was the effect of the transaction on...
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Fully depreciated equipment costing $50,000 is discarded. What is the effect of the transaction on cash flows if (a) $15,000 cash is received for the equipment, (b) no cash is received for the equipment?

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