Lawson Co. sold equipment that cost $40,000 and a current book value of $18,000, for $20,000 cash. Lawson purchased additional equipment during the year. Data from the company's balance sheets at December 31, 2017 and 2016 are:
$\begin{array}{lrr}
&12/31/17&12/31/16\
\text { Equipment } & \$ 650,000 & \$ 520,000 \
\text { Accumulated depreciation } & 106,000 & 82,000
\end{array}$

Show how the results of the transactions will appear on the statement of cash flows using the indirect method.

Question

Lawson Co. sold equipment that cost $40,000 and a current book value of $18,000, for $20,000 cash. Lawson purchased additional equipment during the year. Data from the company's balance sheets at December 31, 2017 and 2016 are:
 $\begin{array}{lrr}
&12/31/17&12/31/16\
\text { Equipment } & \$ 650,000 & \$ 520,000 \
\text { Accumulated depreciation } & 106,000 & 82,000
\end{array}$
 
Show how the results of the transactions will appear on the statement of cash flows using the indirect method.

Quizplus · Accepted Answer

The Answer of Lawson Co. sold equipment that cost $40,000 and a current book value of $18,000, for $20,000 cash. Lawson purchased additional equipment during the year. Data from the company's balance sheets at December 31, 2017 and 2016 are:
 $\begin{array}{lrr}
&12/31/17&12/31/16\
\text { Equipment } & \$ 650,000 & \$ 520,000 \
\text { Accumulated depreciation } & 106,000 & 82,000
\end{array}$
 
Show how the results of the transactions will appear on the statement of cash flows using the indirect method.

Lawson Co Sold Equipment That Cost $40,000 and a Current Book