At January 1, 2020, Benny Enterprises reported a balance in the Equipment account of $45,000.During the year, the company purchased equipment with a cost of $60,000 and sold equipment with a book value of $30,000.The company reported a loss on the sale of equipment of $4,000.Assume the indirect method is used.
Instructions
Determine what amounts will be reported in (a) the operating activities section and (b) the investing activities section with regard to the purchase and sale of equipment.

Question

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The Answer of At January 1, 2020, Benny Enterprises reported a balance in the Equipment account of $45,000.During the year, the company purchased equipment with a cost of $60,000 and sold equipment with a book value of $30,000.The company reported a loss on the sale of equipment of $4,000.Assume the indirect method is used.
Instructions
Determine what amounts will be reported in (a) the operating activities section and (b) the investing activities section with regard to the purchase and sale of equipment.

At January 1, 2020, Benny Enterprises Reported a Balance in the Equipment