A firm's accumulated depreciation account increased $30,000 for the year, and total plant assets at cost increased $200,000. During the year, the firm purchased $350,000 of new equipment for cash, and sold equipment for $50,000 cash. This equipment had been depreciated $30,000 at the time of sale.
Present the complete disclosure of these events in an indirect format Statement of Cash Flows.

Question

Quizplus · Accepted Answer

The Answer of A firm's accumulated depreciation account increased $30,000 for the year, and total plant assets at cost increased $200,000. During the year, the firm purchased $350,000 of new equipment for cash, and sold equipment for $50,000 cash. This equipment had been depreciated $30,000 at the time of sale.
Present the complete disclosure of these events in an indirect format Statement of Cash Flows.

A Firm's Accumulated Depreciation Account Increased $30,000 for the Year