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?

Transcribed Image Text: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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