In: Accounting
The Dalen Company purchased office equipment that cost $6,100
cash on January 1. The equipment had an estimated five year useful
life and an estimated salvage value of $300. The amount of expense
shown on the income statement and the amount of cash outflow from
operating activities shown on the statement of
cash flows at the end of the first year would be (assume
straight-line depreciation):
Income Statement | Statement of Cash Flows |
|||||
A. | $ | 6,100 | $ | 6,100 | ||
B. | $ | 1,160 | $ | 6,100 | ||
C. | $ | 1,160 | $ | 0 | ||
D. | $ | 0 | $ | 1,160 | ||