Wilson Corporation's balance sheet reports equipment that originally cost $64,000. The accumulated depreciation for the equipment is $24,000. Wilson sells the equipment for $36,000. What would the effect be on its income statement and statement of cash flows?

Question

Quizplus · Accepted Answer

Cash proceeds $36,000 - Book value $40,000 = ($4,000) loss; The selling price of $36,000 is reported as a cash inflow for investing activities.

Wilson Corporation's Balance Sheet Reports Equipment That Originally Cost $64,000