Wilbur Company purchased $10,000 of equipment on January 20,2014.Wilbur uses the straight-line method to depreciate the equipment.The equipment has a 5-year useful life with no salvage value.Which of the following statements is correct?
A) Wilbur will record a cash inflow from operating activities of $2,000 in its 2015 financial statements.
B) Wilbur will record a cash outflow from operating activities of $2,000 in its 2015 financial statements.
C) Wilbur will record a cash outflow from investing activities of $2,000 in its 2015 financial statements.
D) Wilbur will record no cash flows related to this asset on its 2015 statement of cash flows.
Correct Answer:
Verified
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