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

Step 1: Define Sale of EquipmentThe sale of equipment involves transferring the ownership of the…

Answered: Equipment with an original cost of…

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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An asset group is being evaluated for an impairment loss. The following financial information is available for the asset group: Carrying Value=100,000,000 Sum of the undiscounted cash flows= 95,000,000 Fair value= 80,000,000 Carrying Value= $100,000,000 What is the value of the impairment loss?
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In 20x7, Sweet Treats sold a piece of equipment with a purchase value of $371,000 and acumulated depreciation of $247,000 for $75,000. Sweet Treats realized a loss of $49.000 n the sale HoW Would this transaction affect overall cash flows? O a Cash flows would increase by $26.000, 0b Cash flows would increase by S49.00 0¢ Cash flows would ncrease by $75.00 0d Cash flows would decrease by $49.00
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Georgia Peach has the following information regarding the sale of its equipment: Sales price $8,000 Cost $25,000 Accumulated depreciation $19,000 Which of the following statements is true regarding how the above information would be reported on Georgia's statement of cash flows? Group of answer choices Loss on sale of plant asset will be $17,000 Gain on sale of plant asset will be $2,000 Depreciation expense will be $19,000 Cash received from sale of plant asset will be $25,000
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A truck costs $82,000 when new and has accumulated depreciation of $70,000. Suppose Frank Towing exchanges the truck for a new truck. The new truck has a market value of $79,000, and Frank pays cash of $52,000. Assume the exchange has commercial substance. What is the result of this exchange? OA. No gain or loss OB. Gain of $15,000 OC. Gain of $67,000 OD. Loss of $15,000
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4. During December 20x3, Bubba Inc. determined that there had been a significant decrease in the value of its equipment used in its manufacturing process. At December 31, 20x3, Bubba compiled the information below. Original cost of the equipment Accumulated depreciation Present value of expected net future cash inflows 500,000 300,000 related to the continued use and eventual disposal of the equipment Fair value less costs of disposal of the equipment 175,000 125,000 What is the amount of impairment loss that should be reported on Bubba's income statement prepared for the year ended December 31, 20х3?
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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