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. What is the complete disclosure of these events in the indirect method Statement of Cash Flows? Multiple Choice $350,000 investing cash outflow; $50,000 investing cash inflow; $70,000 addition reconciling adjustment $350,000 investing cash outflow; $50,000 investing cash inflow; $60,000 addition reconciling adjustment $300,000 investing cash outflow; $130,000 addition reconciling adjustment $350,000 investing cash outflow; $50,000 investing cash inflow; $60,000 addition reconciling adjustment; $70,000 addition reconciling adjustment

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. What is the complete disclosure of these events in the indirect method Statement of Cash Flows? Multiple Choice $350,000 investing cash outflow; $50,000 investing cash inflow; $70,000 addition reconciling adjustment $350,000 investing cash outflow; $50,000 investing cash inflow; $60,000 addition reconciling adjustment $300,000 investing cash outflow; $130,000 addition reconciling adjustment $350,000 investing cash outflow; $50,000 investing cash inflow; $60,000 addition reconciling adjustment; $70,000 addition reconciling adjustment

Name: A firm's accumulated depreciationaccount increased $30,000 for theyea
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Description: A firm's accumulated depreciationaccount increased $30,000 for theyear, and total plant assets at costincreased $200,000. During the year,the firm purchased $350,000 of newequipment for cash, and soldequipment for $50,000 cash. Thisequipment had bee

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Atkins Corporation has provided the following information for the year ended December 31, 2019:• The equipment account balance increased $200,000.• The equipment accumulated depreciation account increased $35,000.• Equipment costing $50,000 was sold during the year resulting in a $10,000 gain.• Depreciation expense on the equipment recorded during the year was $65,000. Which of the following statements is incorrect with respect to preparation of the statement of cash flows? Assume that the equipment purchase and sale resulted in cash flows. A. A $60,000 cash inflow is reported from the equipment sale. B. Using the indirect method, net income is increased by the $65,000 depreciation expense. C. Using the indirect method, net income is decreased by the $10,000 gain on the sale of the equipment. D. A $30,000 cash inflow is reported from the equipment sale.
AM. 37.
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