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
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
Problem 1.3AIC: Estimate the average total estimated useful life of depreciable property, plant, and equipment....
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Question
23.
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2f1709b6-d6cf-4974-9d61-8af289333b8d%2F0dce5485-3ba8-48ff-a09c-29c6d89baf6d%2Fj84xjb_processed.png&w=3840&q=75)
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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