Atkins Corporation has provided the following information for the year ended December 31, 2016: • 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.
Atkins Corporation has provided the following information for the year ended December 31, 2016:
• The equipment account balance increased $200,000.
• The equipment accumulated depreciation account increased $35,000.
• 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.
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 was sold for $50,000 and resulted in a $10,000 gain. This means that the equipment was sold for $60,000 ($50,000 + $10,000). 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