The following information was taken from the fınancial records of ABC Inc.: Equipment, December 31, Year 1 $300,000 Equipment, December 31, Year 2 400,000 Accumulated depreciation, December 31, Year 1 80,000 Accumulated depreciation, December 31, Year 2 60,000 During Year 2, the company sold equipment with a cost of $50,000 and accumulated depreciation of $30,000. A gain of $10,000 was recognized on the sale of the equipment. This was the only sale of equipment during Year 2. Refer to ABC Inc. Assume that all purchases of equipment were paid for with cash. How much cash was paid to purchase equipment during Year 2? O $200,000 O $150,000 O $50,000 O $250,000

The following information was taken from the fınancial records of ABC Inc.: Equipment, December 31, Year 1 $300,000 Equipment, December 31, Year 2 400,000 Accumulated depreciation, December 31, Year 1 80,000 Accumulated depreciation, December 31, Year 2 60,000 During Year 2, the company sold equipment with a cost of $50,000 and accumulated depreciation of $30,000. A gain of $10,000 was recognized on the sale of the equipment. This was the only sale of equipment during Year 2. Refer to ABC Inc. Assume that all purchases of equipment were paid for with cash. How much cash was paid to purchase equipment during Year 2? O $200,000 O $150,000 O $50,000 O $250,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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