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Equipment with an original cost of $75,000 and accumulated depreciation of $30,000 was sold at a loss of $5,000. As a result of this transaction, how would cash be affected? A) Increase by $40,000 B) Decrease by $5,000 C) Increase by $45,000 D) Decrease by $30,000

Equipment with an original cost of $75,000 and accumulated depreciation of $30,000 was sold at a loss of $5,000. As a result of this transaction, how would cash be affected? A) Increase by $40,000 B) Decrease by $5,000 C) Increase by $45,000 D) Decrease by $30,000

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 8DQ: Fully depreciated equipment costing 50,000 was discarded. What was the effect of the transaction on...
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How would cash be affected on these financial accounting question?

Equipment with an original cost of $75,000 and accumulated depreciation of $30,000 was sold at a loss of $5,000. As a result of this transaction, how would cash be affected? A) Increase by $40,000 B) Decrease by $5,000 C) Increase by $45,000 D) Decrease by $30,000
Transcribed Image Text:Equipment with an original cost of $75,000 and accumulated depreciation of $30,000 was sold at a loss of $5,000. As a result of this transaction, how would cash be affected? A) Increase by $40,000 B) Decrease by $5,000 C) Increase by $45,000 D) Decrease by $30,000
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