Chattel Company sold for $7,000 equipment that originally cost $40,000 and had depreciation in the amount...
Chattel Company sold for $7,000 equipment that originally cost $40,000 and had depreciation in the amount of $34,000 taken. What amount is reported in the Cash Flows from Investing Activities section of the Statement of Cash Flows?
Homework Answers
Amount Reported In Cash flows from Investing Activities section of the statement of cash flow is $7000.
Note: Original Cost of equipment 40000$
Less:Depreciation (34000 $)
Net Book Value 6000$
Sold Value of equipment 7000$
Profit on Sale of equipment is 1000$ (7000-6000). This 1000$ Profit on sale of equipment is deducted from income from operating Activites in Net profit reported
and sale Value 7000$ (profit on sale of equipment 1000$+ Net Book Value 6000$ ) is shown as cash flow From investing Activities of Section of Statement of cashflows
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