Q 99

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. 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.

Multiple Choice