Atkins Corporation has provided the following information for the year ended December 31,2019: • The equipment account balance increased by $200,000 from the beginning of the year to the end of the year.
• The equipment accumulated depreciation account balance increased by $35,000 from the beginning of the year to the end of the year.
• Equipment costing $50,000 was sold during the year resulting in a $10,000 gain.
• Depreciation expense recorded on the equipment during the year was $65,000.
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Which of the following statements is correct with respect to determining cash flow from investing activities? Assume that the equipment purchase and sale resulted in cash flows.
A)A $60,000 cash inflow is reported from the equipment sale.
B)A $200,000 cash outflow is reported for equipment purchases.
C)A $50,000 cash outflow is reported for the equipment sale.
D)A $250,000 cash outflow is reported for equipment purchases.

Question

Quizplus · Accepted Answer

The Answer of Atkins Corporation has provided the following information for the year ended December 31,2019: • The equipment account balance increased by $200,000 from the beginning of the year to the end of the year.
• The equipment accumulated depreciation account balance increased by $35,000 from the beginning of the year to the end of the year.
• Equipment costing $50,000 was sold during the year resulting in a $10,000 gain.
• Depreciation expense recorded on the equipment during the year was $65,000.
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Which of the following statements is correct with respect to determining cash flow from investing activities? Assume that the equipment purchase and sale resulted in cash flows.
A)A $60,000 cash inflow is reported from the equipment sale.
B)A $200,000 cash outflow is reported for equipment purchases.
C)A $50,000 cash outflow is reported for the equipment sale.
D)A $250,000 cash outflow is reported for equipment purchases.

Atkins Corporation Has Provided the Following Information for the Year