Uno Company sold office equipment with a cost of $42,100 and accumulated depreciation of $38,449 for $5,780. Required a. What is the book value of the asset at the time of sale? b. What is the amount of gain or loss on the disposal? (Loss amount should be indicated with a minus sign.) c. How would the sale affect net income (increase, decrease, no effect) and by how much? d. How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how much? e. How would the event affect the statement of cash flows (inflow, outflow, no effect) and in what section? a Book value b. Gain (loss) on sale c. Net income would i d 0. Total assets would Cash flow would Section by by by
Uno Company sold office equipment with a cost of $42,100 and accumulated depreciation of $38,449 for $5,780. Required a. What is the book value of the asset at the time of sale? b. What is the amount of gain or loss on the disposal? (Loss amount should be indicated with a minus sign.) c. How would the sale affect net income (increase, decrease, no effect) and by how much? d. How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how much? e. How would the event affect the statement of cash flows (inflow, outflow, no effect) and in what section? a Book value b. Gain (loss) on sale c. Net income would i d 0. Total assets would Cash flow would Section by by by
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Uno Company sold office equipment with a cost of $42,100 and accumulated depreciation of $38,449 for $5,780.
Required
a. What is the book value of the asset at the time of sale?
b. What is the amount of gain or loss on the disposal? (Loss amount should be indicated with a minus sign.)
c. How would the sale affect net income (increase, decrease, no effect) and by how much?
d. How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how much?
e. How would the event affect the statement of cash flows (inflow, outflow, no effect) and in what section?
a. Book value
b. Gain (loss) on sale
c.Net income would
Total assets would
Cash flow would
Section
d
e
by
by
by
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