On January 1, Year 1, Bacco Company had a balance of $69,600 in its Delivery Equipment account. During Year 1, Bacco purchased delivery equipment that cost $35.000. The balance in the Delivery Equipment account on December 31, Year 1, was $70,296. The Year 1 income statement reported a gain from the sale of equipment for $2,300. On the date of sale, accumulated depreciation on the equipment sold amounted to $10,000. Required a. Determine the original cost of the equipment that was sold during Year 1. b. Determine the amount of cash flow from the sale of delivery equipment that should be shown in the investing activities section of the Year 1 statement of cash flows. Complete this question by entering your answers in the tabs below. Required A Required B Determine the original cost of the equipment that was sold during Year 1. Onginal cost of the equipment Reit Required B>

On January 1, Year 1, Bacco Company had a balance of $69,600 in its Delivery Equipment account. During Year 1, Bacco purchased delivery equipment that cost $35.000. The balance in the Delivery Equipment account on December 31, Year 1, was $70,296. The Year 1 income statement reported a gain from the sale of equipment for $2,300. On the date of sale, accumulated depreciation on the equipment sold amounted to $10,000. Required a. Determine the original cost of the equipment that was sold during Year 1. b. Determine the amount of cash flow from the sale of delivery equipment that should be shown in the investing activities section of the Year 1 statement of cash flows. Complete this question by entering your answers in the tabs below. Required A Required B Determine the original cost of the equipment that was sold during Year 1. Onginal cost of the equipment Reit Required B>

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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On January 1, Year 1, Bacco Company had a balance of $79,600 in its Delivery Equipment account. During Year 1, Bacco purchased delivery equipment that cost $27,500. The balance in the Delivery Equipment account on December 31, Year 1, was $80,396. The Year 1 income statement reported a gain from the sale of equipment for $3,400. On the date of sale, accumulated depreciation on the equipment sold amounted to $14,000. Required a. Determine the original cost of the equipment that was sold during Year 1. b. Determine the amount of cash flow from the sale of delivery equipment that should be shown in the investing activities section of the Year 1 statement of cash flows. Complete this question by entering your answers in the tabs below. Required A Required B Determine the original cost of the equipment that was sold during Year 1. Original cost of the equipment
The Dickinson Company reported net income of $155,000 for the current year. Depreciation recorded on buildings and equipment amounted to $65,000 for the year. In addition, a building with an original cost of $250,000 and accumulated depreciation of $190,000 on the date of the sale, was sold for $75,000. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $20,000 $15,000 Accounts receivable 19,000 32,000 Inventories 50,000 65,000 Accounts payable 12,000 18,000 Required: Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
On January 1, Year 1, Bacco Company had a balance of $64,600 in its Delivery Equipment account. During Year 1, Bacco purchased delivery equipment that cost $26,000. The balance in the Delivery Equipment account on December 31, Year 1, was $65,246. The Year 1 income statement reported a gain from the sale of equipment for $3,200. On the date of sale, accumulated depreciation on the equipment sold amounted to $10,500. Required a. Determine the original cost of the equipment that was sold during Year 1. b. Determine the amount of cash flow from the sale of delivery equipment that should be shown in the investing activities section of the Year 1 statement of cash flows. Complete this question by entering your answers in the tabs below. Required A Required B Determine the original cost of the equipment that was sold during Year 1. Original cost of the equipment
The net income reported on the income statement for the current year was $262,100. Depreciation recorded on equipment and a building amounted to $78,400 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $71,030 $75,290 Accounts receivable (net) 90,070 92,910 Inventories 177,580 160,070 Prepaid expenses 9,870 10,620 Accounts payable (merchandise creditors) 79,340 84,020 Salaries payable 11,440 10,470 a. Prepare the "Cash Flows from Operating Activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
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The net income reported on the income statement for the current year was $330,400. Depreciation recorded on equipment and a building amounted to $105,140 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $89,900 $95,010 Accounts receivable (net) 111,940 117,700 Inventories 217,550 209,050 Prepaid expenses 13,290 14,160 Accounts payable (merchandise creditors) 95,060 103,580 Salaries payable 15,590 13,710 Required: A. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. B. If the direct method had been used, would the net cash flow from operating…
Lake Norman Company reported net income of $225,000 for the current year. Depreciation recorded on buildings and equipment amounted to $75,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $20,000 $15,000 Accounts receivable 22,000 32,000 Inventory 50,000 60,000 Accounts payable 12,000 18,000 Instructions Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method
The net income reported on the income statement for the current year was $312,900. Depreciation recorded on equipment and a building amounted to $93,600 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $81,040 $85,090 Accounts receivable (net) 102,760 105,000 Inventories 202,600 180,900 Prepaid expenses 11,260 12,000 Accounts payable (merchandise creditors) 90,520 94,960 Salaries payable 13,050 11,830 Question Content Area A. Prepare the "Cash Flows from Operating Activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. B. If the direct method had been used, would the net cash flow from operating activities have been the same? yes or no
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