Selected information from the company's financial records is presented below: During 2020, the company sold equipment with a cost of $50,000 and accumulated depreciation of $30,000. A gain of $10,000 was recognized on the sale of the equipment. This was the only equipment sale during the year.
-Refer to Metalcrafts, Inc. Assume that all purchases of equipment were paid with cash. How much cash was paid to purchase equipment during 2020?
A)$50,000
B)$200,000
C)$150,000
D)$250,000

Question

Selected information from the company's financial records is presented below:  During 2020, the company sold equipment with a cost of $50,000 and accumulated depreciation of $30,000. A gain of $10,000 was recognized on the sale of the equipment. This was the only equipment sale during the year.
-Refer to Metalcrafts, Inc. Assume that all purchases of equipment were paid with cash. How much cash was paid to purchase equipment during 2020?
A)$50,000 
B)$200,000 
C)$150,000 
D)$250,000

Quizplus · Accepted Answer

The correct amount of cash paid to purchase equipment during 2020 is $150,000. This is typically derived from analyzing the cash flow statement or investment activities section, where purchases of equipment are listed. Without specific financial statements provided, this answer assumes familiarity with the scenario or question context that indicates $150,000 was the amount spent on equipment purchases.

Selected Information from the Company's Financial Records Is Presented Below