On January 1, 2013, the Adams Company purchased equipment for $36,000 cash. On December 31, 2013, depreciation of $9,000 was recorded. Which of the following correctly shows the combined effect of these two events on the income statement and statement of cash flows? Adams uses the direct method.

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The Answer of On January 1, 2013, the Adams Company purchased equipment for $36,000 cash. On December 31, 2013, depreciation of $9,000 was recorded. Which of the following correctly shows the combined effect of these two events on the income statement and statement of cash flows? Adams uses the direct method.

On January 1, 2013, the Adams Company Purchased Equipment for $36,000