A business sold equipment for $8,000 in cash proceeds which had an original cost of $50,000 and accumulated depreciation at the date of sale of $40,000. Which of the statements below is true?
A) A loss of $2,000 was reported in the income statement and a cash inflow of $8,000 was reported in the cash flow statement.
B) A loss was not reported in the income statement but a cash inflow of $8,000 was reported in the cash flow statement.
C) A loss was not reported in the income statement but a cash inflow of $10,000 was reported in the cash flow statement.
D) A loss of $8,000 was reported in the income statement and a cash inflow of $13,000 was reported in the cash flow statement.
Correct Answer:
Verified
Q1: Reference: 14-01
Financial statements for Larned Company
Q2: Reference: 14-01
Financial statements for Larned Company
Q3: Reference: 14-01
Financial statements for Larned Company
Q4: Reference: 14-01
Financial statements for Larned Company
Q5: Reference: 14-01
Financial statements for Larned Company
Q7: Reference: 14-01
Financial statements for Larned Company
Q8: Reference: 14-01
Financial statements for Larned Company
Q9: Reference: 14-01
Financial statements for Larned Company
Q10: Reference: 14-01
Financial statements for Larned Company
Q11: Reference: 14-01
Financial statements for Larned Company
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