The records of Count Bases Pizzas showed the following.
30 June 15 30 June 16
Pizza ovens and equipment $49 000 $53 000
Accumulated depreciation ovens and equipment 10 000 12 000
Cost of equipment sold 5 000
Carrying value of equipment sold 3 000
Proceeds of sale of equipment 4 500
What is the investing cash inflow for equipment sold during 2015/16?

Question

Quizplus · Accepted Answer

The investing cash inflow for equipment sold during 2015/16 is the proceeds of sale of equipment, which is $4,500. Option A is incorrect because it provides the carrying value of the equipment, which is not relevant for the investing cash inflow calculation. Option B is incorrect because it provides the cost of the equipment sold, which is not the same as the proceeds of the sale. Option D is incorrect because it is not specified whether the $5,000 refers to the cost or the selling price of the equipment, and in any case, it does not reflect the actual cash inflow received from the sale.

The Records of Count Bases Pizzas Showed the Following