Vertex Innovations sold machinery with a cost of $50,000 and accumulated depreciation of $12,000 for an amount that resulted in a gain of $8,000. What amount should Vertex Innovations report on the statement of cash flows as 'proceeds from sale of plant assets'?

Vertex Innovations sold machinery with a cost of $50,000 and accumulated depreciation of $12,000 for an amount that resulted in a gain of $8,000. What amount should Vertex Innovations report on the statement of cash flows as 'proceeds from sale of plant assets'?

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 1.3AIC: Estimate the average total estimated useful life of depreciable property, plant, and equipment....

See similar textbooks

Related questions

Q: Please explain this financial accounting problem by applying valid financial principles.

A: Analysis of Depreciation and Book Value Using the Straight-Line MethodIntroductionThis financial…

Q: I am trying to find the accurate solution to this general accounting problem with appropriate…

A: To find the break-even sales amount, use the formula:Break-Even Sales = Fixed Costs / Contribution…

Q: Orville Manufacturing Company's work-in-process inventory on August 1 has a balance of $32,400,…

A: To determine whether manufacturing overhead is overallocated or underallocated, we compare the…

Q: What is the gross margin?

A: Step 1: Definitions Concept of Gross Profit:Gross profit is the financial gain a company earns after…

Q: I need help finding the accurate solution to this financial accounting problem with valid methods.

A: Step 1: Detailed Explanation of Contribution Margin Contribution margin is the difference between…

Q: General accounting

A: Step 1: Detailed Explanation of Predetermined Overhead RateThe predetermined overhead rate is…

Q: What is the flexible budget net income?

A: Explanation of Flexible Budget:A flexible budget is a financial plan that adjusts based on changes…

Q: Can you help me solve this general accounting question using the correct accounting procedures?

A: Step 1: Detailed Explanation of Inventory Turnover RatioThe inventory turnover ratio is a financial…

Q: Financial accounting

A: Plugging these values into the formula:Margin = $60,000 / $500,000Margin = 0.12 or 12%Therefore, the…

Q: Lakeshore Technologies requires $900,000 in assets and will be 100% equity financed. If the Earnings…

A: 1. Understanding Return on Equity (ROE)Return on Equity (ROE) is a key financial ratio that measures…

Q: Help

A: Step 1: Detailed explanation of Gross Profit MethodThe gross profit method is used to estimate the…

Q: general accounting

A: Step 1: Definition of Realized Gain or LossRealized Gain or Loss refers to the actual profit or loss…

Q: Please provide the solution to this financial accounting question with accurate financial…

A: Step 1: Detailed Explanation of Depreciation Tax Shield The depreciation tax shield represents the…

Q: If sales revenue is $280 million and accounts receivable decreased by $30 million, the amount of…

A: Step 1: Definitions Concept of Sales Revenue:Sales revenue is the total amount earned by a business…

Q: The selling price of the company products in 55 per unit

A: Explanation of Absorption Costing:Absorption costing is a costing method in which all manufacturing…

Q: Provide accurate solution this accounting problem

A: Q1 solution To calculate the plant wide overhead rate, I need to divide the total overhead costs by…

Q: Calculate manufacturing overhead cost

A: Explanation of Manufacturing Overhead Costs: Manufacturing overhead costs are all indirect…

Q: Please explain this financial accounting problem by applying valid financial principles.

A: The question requires the computation of the asset turnover ratio. The asset turnover ratio…

Q: At the beginning of the year, Queen Industries' liabilities equal $92,000. During the year, assets…

A: Meaning of Assets:Assets are valuable resources owned by a business that are expected to provide…

Q: I am searching for the correct answer to this general accounting problem with proper accounting…

A: Concept of Cost Driver:A cost driver is a factor that causes or influences the cost of certain…

Q: What is the accounting equation and why is it important? Explanation i need .

A: The accounting equation is the fundamental framework for double-entry bookkeeping, expressing the…

Q: Financial accounting question

A: To calculate Beta Industries' actual profit, we need to work through the following steps: Determine…

Q: I am trying to find the accurate solution to this financial accounting problem with appropriate…

A: Step 1: Detailed Explanation of Gross MarginGross margin represents the percentage of sales revenue…

Q: Hello tutor please provide correct answer general accounting question with correct solution do fast

A: Step 1: Detailed explanation of Stockholders' EquityStockholders' equity represents the difference…

Q: Please provide the solution to this general accounting question using proper accounting principles.

A: Step 1: Detailed Explanation of the High-Low MethodThe high-low method is used to estimate the…

Q: I need help with question is correct answer and accounting

A: Step 1: Detailed explanation of Contribution Margin RatioThe contribution margin ratio represents…

Q: Get correct answer please general accounting

A: Step 1: Definition of Net Realizable Value (NRV)Net Realizable Value (NRV) is the estimated amount…

Q: Please provide the correct answer to this financial accounting problem using accurate calculations.

A: The formula for Degree of Operating Leverage (DOL) is:DOL = Contribution Margin / Net Operating…

Q: Could you help me solve this financial accounting question using appropriate calculation techniques?

A: Meaning of Contribution Margin:Contribution margin is the amount remaining from sales revenue after…

Q: What is the difference between accrual and cash basis accounting? Explanation.

A: Accrual Basis Accounting and Cash Basis Accounting are two different methods of recognizing and…

Q: Step by step with financial accounting

A: Step 1: Detailed Explanation of Variance CalculationsVariances are key metrics used to evaluate the…

Q: General accounting question

A: Step 1: Estimate uncollectible amount = 5% of $200,000 = $10,000Step 2: Bad Debt Expense = Ending…

Q: Can you solve this financial accounting problem with appropriate steps and explanations?

A: Explanation of Contribution Margin:Contribution margin is the amount remaining from sales revenue…

Q: Solve this question and accounting

A: Step 1: Detailed Explanation of Gross Margin RatioThe gross margin ratio is a financial metric that…

Q: Kidman Manufacturing incurred the following costs in March: direct materials $142,000, direct labor…

A: To find total manufacturing overhead cost, you include all indirect costs related to manufacturing,…

Q: Overhead at the end of the year was

A: Meaning of Predetermined Overhead Rate:A predetermined overhead rate is calculated before the…

Q: See an attachment for details General accounting question not need ai solution

A: Step 1: Detailed Explanation of the Return on Assets (ROA) Return on assets (ROA) measures a…

Q: I need help with this financial accounting question using the proper accounting approach.

A: Step 1: Detailed Explanation of Real Interest RateThe real interest rate is the interest rate…

Q: Can you explain this general accounting question using accurate calculation methods?

A: Given:Pre-tax cost of debt = 6% = 0.06Corporate tax rate = 35% = 0.35 Step-by-Step…

Q: Please provide the accurate answer to this general accounting problem using valid techniques.

A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is a rate used to…

Q: Please explain the solution to this general accounting problem with accurate principles.

A: To determine the total cost of the machinery, we need to add up all the costs involved:Machinery…

Q: Samuel, a single taxpayer, bought his home in San Diego 25 years ago for $120,000. He has lived…

A: Let us break down the calculation of Samuel's taxable gain on the sale of his home step-by-step.The…

Q: Solve this Accounting question

A: Explanation of Variable Costs: Variable costs are expenses that change in direct proportion to the…

Q: Can you help me solve this general accounting problem using the correct accounting process?

A: Step 1: Detailed Explanation of Labor Variance CalculationLabor variances consist of two components:…

Q: Can you help me with General accounting question?

A: Step 1: Detailed Explanation of High-Low MethodThe high-low method is used to estimate fixed and…

Q: Choice best answer general accounting

A: Step 1: Definition of Gross ProfitGross Profit is a key financial metric that measures the…

Q: Can you solve this general accounting problem using accurate calculation methods?

A: Step 1: Detailed Explanation of Break-Even SalesThe break-even sales amount is the point at which…

Q: Need answer the accounting question not use ai please don't

Q: General accounting question

A: Step 1: Detailed Explanation of Total Assets Calculation The relationship between stockholders'…

Q: I need the correct answer to this general accounting problem using the standard accounting approach.

A: Step 1: Detailed Explanation of Price-Earnings (P/E) RatioThe price-earnings ratio (P/E ratio) is a…

Question

Can you explain the correct methodology to solve this financial accounting problem?

Vertex Innovations sold machinery with a cost of $50,000 and accumulated
depreciation of $12,000 for an amount that resulted in a gain of $8,000.
What amount should Vertex Innovations report on the statement of cash
flows as 'proceeds from sale of plant assets'?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

What amount should crystal tech report?
Proceeds from sale of plant assets?
Crystal Tech Inc. Sold machinary with a cost of $30,000 and accumulated depreciation of $12,000 for an amount that resulted in a gain of $4,000.
I am looking for help with this general accounting question using proper accounting standards.
Please see attachments for details
Can you please give me correct answer this general accounting question?
Compute investing and financing amounts for the statement of cash flows: please answer the financial accounting question
PhotoEase Camera Co. sold equipment with a cost of $19,000 and accumulateddepreciation of $7,000 for an amount that resulted in a gain of $1,000. What amount shouldPhotoEase report on the statement of cash flows as “proceeds from sale of plant assets”?a. $13,000b. $11,000c. $12,000d. Some other amount
Assume a company sold a piece of equipment that had an original cost of $500,000 and accumulated depreciation of $300,000. The gain on the sale was $15,000. In addition, the beginning and ending balances in the company’s Property, Plant, and Equipment account were $4,700,000 and $4,600,000, respectively. Based solely on the information provided, the company’s net cash provided by (used in) investing activities would be: Multiple Choice $(115,000). $(200,000). $(170,000). $(185,000).
If Marigold Imports Corporation realizes a gain of $96000 on a cash sale of a building having a book value of $708000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is $612000. $708000. $804000. $96000.
What is the amount of capital spending on these financial accounting question?
What amount should be reported as net cash flow from investing activities?