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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What was the amount of the investing activities cash inflow from the sale of the equipment? Assume that the equipment purchase and sale resulted in cash flows.
A)$30,000.
B)$60,000.
C)$40,000.
D)$50,000.

Question

Quizplus · Accepted Answer

The equipment sale resulted in a $10,000 gain, which means the equipment was sold for $60,000 ($50,000 cost + $10,000 gain). Therefore, the investing activities cash inflow from the sale of the equipment is $60,000.

Atkins Corporation Has Provided the Following Information for the Year