XYZ Company reported net income of P9,000,000 for the current year. Changes occurred in certain accounts as follows: Equipment - P750,000 increase; Accumulated depreciation P1,200,000 increase; Notes payable - P900,000 increase. During the year, the entity sold equipment costing P750,000, with a carrying value P390,000 for a gain of P150,000. In December of the current year, the entity purchased equipment costing P1,500,000 with P600,000 cash and a 12% note payable for the remainder. What amount should be reported as net cash used in investing activities?
XYZ Company reported net income of P9,000,000 for the current year. Changes occurred in certain accounts as follows: Equipment - P750,000 increase; Accumulated depreciation P1,200,000 increase; Notes payable - P900,000 increase. During the year, the entity sold equipment costing P750,000, with a carrying value P390,000 for a gain of P150,000. In December of the current year, the entity purchased equipment costing P1,500,000 with P600,000 cash and a 12% note payable for the remainder. What amount should be reported as net cash used in investing activities?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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XYZ Company reported net income of P9,000,000 for the current year. Changes occurred in certain accounts as follows: Equipment - P750,000 increase;
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