Lakeme, Inc. reported net income of $50,000 for the year ended December 31, 2022. Included in net income were depreciation expenses of $9,200 and a gain on the sale of equipment of $2,100. The equipment had a historical cost of $45,000 and accumulated depreciation of $28,000. Each of the following accounts increased during 2022: Accounts Patents Prepaid rent Increase Amount $6,000 $7,200 Available-for-sale securities $1,500 Bonds payable $6,000 What is the amount of cash provided by or used by investing activities for Lakeme, Inc. for the year ended December 31, 2022?
Lakeme, Inc. reported net income of $50,000 for the year ended December 31, 2022. Included in net income were depreciation expenses of $9,200 and a gain on the sale of equipment of $2,100. The equipment had a historical cost of $45,000 and accumulated depreciation of $28,000. Each of the following accounts increased during 2022: Accounts Patents Prepaid rent Increase Amount $6,000 $7,200 Available-for-sale securities $1,500 Bonds payable $6,000 What is the amount of cash provided by or used by investing activities for Lakeme, Inc. for the year ended December 31, 2022?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 10CE
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The equipment had a historical cost of $45,000 and
Transcribed Image Text:Lakeme, Inc. reported net income of $50,000 for the year ended December 31, 2022. Included in net income were
depreciation expenses of $9,200 and a gain on the sale of equipment of $2,100. The equipment had a historical cost
of $45,000 and accumulated depreciation of $28,000.
Each of the following accounts increased during 2022:
Accounts
Patents
Prepaid rent
Increase Amount
$6,000
$7,200
Available-for-sale securities $1,500
Bonds payable
$6,000
What is the amount of cash provided by or used by investing activities for Lakeme, Inc. for the year ended December
31, 2022?
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