Equipment with an original cost of $80,000 and accumulated depreciation of $35,000 was sold at a loss of $10,000. As a result of this transaction, how would cash be affected? A) Increase by $35,000 B) Decrease by $10,000 C) Increase by $45,000 D) Increase by $40,000

Equipment with an original cost of $80,000 and accumulated depreciation of $35,000 was sold at a loss of $10,000. As a result of this transaction, how would cash be affected? A) Increase by $35,000 B) Decrease by $10,000 C) Increase by $45,000 D) Increase by $40,000

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 for this financial accounting question?

Equipment with an original cost of $80,000 and accumulated
depreciation of $35,000 was sold at a loss of $10,000. As a
result of this transaction, how would cash be affected?
A) Increase by $35,000
B) Decrease by $10,000
C) Increase by $45,000
D) Increase by $40,000

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