Question
In: Accounting
A building with a book value of $54,000 is sold for $63,000 cash. Using the indirect...
A building with a book value of $54,000 is sold for $63,000 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as follows:
a. an increase of $63,000 from investing activities and a deduction from net income of $9,000
b. an increase of $54,000 from investing activities
c. an increase of $9,000 from investing activities
d. an increase of $54,000 from investing activities and an addition to net income of $9,000
Solutions
Expert Solution
Gain on sale=$63,000-$54,000
=$9,000 deduction from net income.
Sold building is an increase in investing activity.
So the option is A.
ekkarill92 answered 2 years agoRelated Solutions
HOYLE CORPORATION SOLD A BUILDING FOR 200,000 THIS YEAR.THE TAX BASISWAS 235,00 AND BOOK VALUE WAS...
HOYLE CORPORATION SOLD A BUILDING FOR 200,000 THIS YEAR.THE TAX
BASISWAS 235,00 AND BOOK VALUE WAS 250,000. HOYLE HAS BOOK INCOME
BEFORE TAXES OF 3,000.000. WHAT IS AMOUNTOF TAXABLE INCOME ON
SCHEDULE M1 FORM 1120 FOR THE YEAR
3,015,000
3,035,000
3,050,000
3,235,000
BRAND purchased equipment for $290,000 cash, sold equipment costing $150,000 with a book value of $100,000,...
BRAND purchased equipment for $290,000 cash, sold equipment
costing $150,000 with a book value of $100,000, and declared and
paid dividends during 2021. No new notes payable were issued during
the year.
Financial data follows. All balances are
normal.
Balance Sheet
Dec. 31, 2021
Dec. 31, 2020
Change
Cash
$ 36,000
$29,000
$ 7,000
Accounts receivable
125,000
97,000
28,000
Inventory
100,000
114,000
(14,000)
Equipment
740,000
600,000
140,000
Accum. depreciation
370,000
220,000
150,000
Accounts payable
170,000
150,000
20,000
Unearned revenue
74,000
44,000
30,000
Accrued...
BRAND purchased equipment for $290,000 cash, sold equipment costing $150,000 with a book value of $100,000,...
BRAND purchased equipment for $290,000 cash, sold equipment
costing $150,000 with a book value of $100,000, and declared and
paid dividends during 2021. No new notes payable were issued during
the year.
Financial data follows. All balances are
normal.
Balance Sheet
Dec. 31, 2021
Dec. 31, 2020
Change
Cash
$ 36,000
$29,000
$ 7,000
Accounts receivable
125,000
97,000
28,000
Inventory
100,000
114,000
(14,000)
Equipment
740,000
600,000
140,000
Accum. depreciation
370,000
220,000
150,000
Accounts payable
170,000
150,000
20,000
Unearned revenue
74,000
44,000
30,000
Accrued...
Cash Flows from Investing Activities During the year, Hayashi, Inc. sold equipment with a book value...
Cash Flows from
Investing Activities
During the year,
Hayashi, Inc. sold equipment with a book value of $125,000 for
$175,000 (original purchase cost of $225,000). New equipment was
purchased.
Hayashi provided the
following comparative balance sheets:
Hayashi, Inc.
Comparative Balance Sheets
At December 31, 20X1 and 20X2
20X1
20X2
Long-Term Assets
Plant and equipment
$1,000,000
$1,025,000
Accumulated depreciation
(500,000)
(525,000)
Land
500,000
711,750
Required:
Calculate the
investing cash flows for the current year. Use a minus sign to
indicate a...
On June 24, 20Y9, a building was sold for $225,000 cash. The building was originally purchased...
On June 24, 20Y9, a building was sold for $225,000 cash. The
building was originally purchased in 20Y1 for $210,000. To date, it
had accumulated depreciation of $20,000. Which of the following is
true on the date of disposition?
A.A gain on sale of $35,000 should be recorded.
B.The building had a net book value of $205,000.
C.The building had a fair market value of $190,000.
D.The building had a net book value of $225,000
Jarvis Corporation owned a building with a book value of $109,000 at 12/31/24. The building had...
Jarvis Corporation owned a building with a book value of
$109,000 at 12/31/24. The building had a 15-year remaining life and
a revaluation surplus balance of $46,000 on that date. The company
sold the building on 1/1/25 for $182,000. What is the effect of the
sale on OCI per IFRS?
Select one:
a. $119,000
b. $182,000
c. $27,000
d. $46,000
e. $73,000
Jarvis Corporation owned a building with a book value of $109,000 at 12/31/24. The building had...
Jarvis Corporation owned a building with a book value of
$109,000 at 12/31/24. The building had a 15-year remaining life and
a Revaluation Surplus balance of $46,000 on that date. The company
sold the building on 1/1/25 for $182,000. What is the combined
effect of the sale and Revaluation Surplus adjustment on Total
Assets per IFRS?
Select one:
a. $109,000
b. $182,000
c. $27,000
d. $46,000
e. $73,000
If an asset is sold (market value) for more or less than its book value that...
If an asset is sold (market value) for more or less than its
book value that used for tax purposes, and adjustment must be made
to the taxable income during the year. How this difference in
market value and book value affect the taxable income?
1.Equipment with a book value of $82,000 and an original cost of $161,000 was sold at...
1.Equipment with a book value of $82,000 and an original cost of
$161,000 was sold at a loss of $33,000. Paid $100,000 cash for a
new truck. Sold land costing $310,000 for $405,000 cash, yielding a
gain of $95,000. Long-term investments in stock were sold for
$92,100 cash, yielding a gain of $14,000. Use the above information
to determine cash flows from investing activities. (Amounts to be
deducted should be indicated with a minus sign.)
2.
Net income was $467,000....
Prepare a statement of cash flows for 2020 using the indirect method using the information below....
Prepare a statement of cash flows for 2020 using the indirect
method using the information below.
Pennant Corporation's end of year comparative balance sheets are
presented below.
Pennant Corporation
Comparative Balance Sheets
December 31
2020
2019
Cash
$ 15,200 $ 17,700
Accounts receivable
25,200 22,300
Investments
20,000 16,000
Equipment
60,000 70,000
Accumulated
depreciation
(14,000) (10,000)
Total
$106,400 $116,000
Accounts payable
$ 14,600 $11,100
Bonds
payable
...
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