Equipment, beginning of year Equipment, end of year Accumulated depreciation, beginning of year $340,000 420,000 190,000 Accumulated depreciation, end of year 184,000 Equipment with a cost of $20,000 and a book value of $6,000 was sold during the year for cash of $18,000. Additional equipment was purchased during the year for cash. The company uses the indirect method in preparing the statement of cash flows. What is the amount of depreciation expense that will be reported in the operating activities section of the statement? Multiple Choice $8,000 $22,000 $14,000 $20,000 O O O
Equipment, beginning of year Equipment, end of year Accumulated depreciation, beginning of year $340,000 420,000 190,000 Accumulated depreciation, end of year 184,000 Equipment with a cost of $20,000 and a book value of $6,000 was sold during the year for cash of $18,000. Additional equipment was purchased during the year for cash. The company uses the indirect method in preparing the statement of cash flows. What is the amount of depreciation expense that will be reported in the operating activities section of the statement? Multiple Choice $8,000 $22,000 $14,000 $20,000 O O O
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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23.
Transcribed Image Text:Equipment, beginning of year
$340,000
Equipment, end of year
Accumulated depreciation, beginning of year
420,000
190,000
Accumulated depreciation, end of year
184,000
Equipment with a cost of $20,000 and a book value of $6,000 was sold during the year for cash of $18,000. Additional equipment was purchased during the year for cash.
The company uses the indirect method in preparing the statement of cash flows. What is the amount of depreciation expense that will be reported in the operating activities section of the statement?
Multiple Choice
$8,000
$22,000
$14,000
$20,000
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