Assume the following excerpts from a company's balance sheet: Property, plant, and equipment Long-term investments Beginning Balance Ending Bal $ 3,750,000 $ 950,000 $ 3,500, $ 1,100, During the year, the company did not purchase any property, plant, and equipment. It sold equipment that had accumulated depreciation of $150,000 for a loss of $20,000. The company did not sell any long-term investments during the period. Based solely on the information provided, the company's net cash provided by (used in) investing activities would

Assume the following excerpts from a company's balance sheet: Property, plant, and equipment Long-term investments Beginning Balance Ending Bal $ 3,750,000 $ 950,000 $ 3,500, $ 1,100, During the year, the company did not purchase any property, plant, and equipment. It sold equipment that had accumulated depreciation of $150,000 for a loss of $20,000. The company did not sell any long-term investments during the period. Based solely on the information provided, the company's net cash provided by (used in) investing activities would

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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The T-accounts for Equipment and the related Accumulated Depreciation—Equipment for Luo Company at the end of 2020 are shown here. Equipment Beg. bal. 80,600 Disposals 23,800 Acquisitions 40,000 End. bal. 96,800 Accumulated Depreciation—Equipment Disposals 8,700 Beg. bal. 47,800 Depr. exp. 13,300 End. bal. 52,400 In addition, Luo’s income statement reported a loss on the disposal of plant assets of $6,100. What amount was reported on the statement of cash flows as “cash flow from sale of equipment”? (Show amount that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash flow from sale of equipment $
(A) Rifhan products use straight-line depreciation on all its depreciable assets. The accounts are adjusted and closed at the end of each calendar year. On January 4, 1999, the corporation purchased machinery for cash at a cost of $90,000. Its useful life was estimated to be 10 years with a residual value of $22,000. Depreciation for partial years is recorded to the nearest full month. In 2001, after almost 2 years of experience with the equipment, management decided that the estimated life of the equipment should be revised from 10 years to 7 years. No change was made in the estimate of residual value. The revised estimate of useful life was decided on prior to recording to depreciation for the period ended December 31, 2001. Instructions: Prepare journal entries in chronological order for the above events, beginning with the purchase of the machinery on January 4, 1999. Show separately the depreciation for 1999, 2000, and 2001 and 2002. (B) During the current year, Matrix Homes…
Assume a company’s beginning and ending balances in the Accumulated Depreciation account are $30,000 and $44,000, respectively. During the period the company sold one noncurrent asset that had an original cost of $8,000. The cash proceeds from the sale were $3,000 and the gain on the sale was $1,000. What is the amount of the depreciation charges that the company would include in the operating activities section of its statement of cash flows? Multiple Choice $18,000 $20,000 $24,000 $8,000
c. Accumulated Depreciation: The company has only one plant asset (equipment) that it purchased at the start of this year. That asset had cost $34,000, had an estimated life of seven years, and is expected to be valued at $4,600 at the end of the seven years. The company uses straight line depreciation method to calculate its depreciation. Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Accumulated depreciation -Equipment
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Durrand Corporation's accumulated depreciation increased by $13,827, while patents decreased by $2,267 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $4,191 from sale of land. The company earned a net income of $41,464. Assuming there were no changes in noncash current assets and liabilities, determine the net cash flows from operating activities under the indirect method. $fill in the blank 1
Durrand Corporation's accumulated depreciation increased by $13,421, while patents decreased by $2,088 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $3,367 from sale of land. The company earned a net income of $53,251. Assuming there were no changes in noncash current assets and liabilities, determine the net cash flows from operating activities under the indirect method. $fill in the blank 1
On December 31, Strike Company sold one of its batting cages for $22,244. The equipment had an initial cost of $247,161 and had accumulated depreciation of $222,445. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction? a.Loss of $200,201 b.Gain of $224,917 c.Loss of $2,472 d.Gain of $2,472
On December 31, Strike Company sold one of its batting cages for $12,489. The equipment had an initial cost of $427,900 and has accumulated depreciation of $406,505. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction? a.Loss of $12,489 b.Loss of $8,906 c.Gain of $8,906 d.Gain of $12,489
Calculate the comprehensive income for the Staffordshire Products Company given the information below. Positive amounts are unrealized gains and negative amounts are unrealized losses: Net Income $64,500Dividends $5,600Pension liability adjustment $9,000Foreign currency translation ($5,050)Gain discontinued operations $3,200Available-for sale investments declined from $39,000 to $37,150
COTB MC Qu. 15-70 (Algo) Assume a company sold a... Assume a company sold a piece of equipment that had an original cost of $500,000 and accumulated depreciation of $300,000. The gain on the sale was $21,000. In addition, the beginning and ending balances in the company's Property, Plant, and Equipment account were $4,700,000 and $4,600,000, respectively. Based solely on the information provided, the company's net cash provided by (used in) investing activities would be: Multiple Choice $(179,000). $(200,000). O $(158,000). $(121,000).
An asset which costs $25,000 and has accumulated depreciation of $6,000 is sold for $11,000. What amount of gain or loss will be recognized when the asset is sold? a. A gain of $14,000 b. A loss of $14,000 c. A gain of $8,000 d. A loss of $8,000