Silken Corp.reported net income of $420,000 for 2014.Changes occurred in several balance sheet accounts as follows:

Additional information:
·During 2014,Silken sold equipment costing $35,000,with accumulated depreciation of $16,800,for a gain of $7,000.
·In December 2014,Silken purchased equipment costing $70,000 with $28,000 cash and a 12% note payable of $42,000.
·Depreciation expense for the year was $72,800.
In Silken's 2014 statement of cash flows,net cash used in investing activities should be
A)$30,800.
B)$16,800.
C)$2,800.
D)$49,000.

Question

Silken Corp.reported net income of $420,000 for 2014.Changes occurred in several balance sheet accounts as follows:

Additional information:
·During 2014,Silken sold equipment costing $35,000,with accumulated depreciation of $16,800,for a gain of $7,000.
·In December 2014,Silken purchased equipment costing $70,000 with $28,000 cash and a 12% note payable of $42,000.
·Depreciation expense for the year was $72,800.
In Silken's 2014 statement of cash flows,net cash used in investing activities should be
A)$30,800. 
B)$16,800. 
C)$2,800. 
D)$49,000.

Quizplus · Accepted Answer

The Answer of Silken Corp.reported net income of $420,000 for 2014.Changes occurred in several balance sheet accounts as follows:

Additional information:
·During 2014,Silken sold equipment costing $35,000,with accumulated depreciation of $16,800,for a gain of $7,000.
·In December 2014,Silken purchased equipment costing $70,000 with $28,000 cash and a 12% note payable of $42,000.
·Depreciation expense for the year was $72,800.
In Silken's 2014 statement of cash flows,net cash used in investing activities should be
A)$30,800. 
B)$16,800. 
C)$2,800. 
D)$49,000.