Answer :
Investing Cash flows for the year | $ 945,000 |
Calculation :
Net cash flows from investing activities = Amount of Equipment Sold
Amount of sale of equipment | |||
Cost of equipment sold | WN 1 | $1,283,000 | |
Less: | Accumulated depreciation on equipment sold | WN 2 | -332,000 |
951,000 | |||
Less: | Loss on sale of equipment (given) | -6,000 | |
Amount of Sale | 945,000 |
Working notes :
1. | Equipment account | |||
Debit | Credit | |||
opening cost | 8,00,000 | Ending cost | 1,17,000 | |
Purchases during the year | 6,00,000 | cost of equipment sold ( Balancing figure ) | 12,83,000 | |
14,00,000 | 14,00,000 | |||
2. | Accumulated depreciation | |||
Debit | Credit | |||
ending balance | 20,000 | opening balance | 3,50,000 | |
Accumulated depreciation on equipment sold ( balancing figure ) | 3,32,000 | Depreciation for the year | 2,000 | |
3,52,000 | 3,52,000 |
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Question 2.0 point The talowing data relates to Laurier Inc. for the year 12 Opening cast...