A boxland company uses the indirect method for reporting cash flows from operating activities. During an accounting period, plant which had cost OMR 60,000 some years ago was sold for OMR 6,000. The accumulated depreciation on this plant at the time of disposal was OMR 50,000. The effects of this transaction on the statement of cash flows are as follows: Operating activities: Add disposal proceeds OMR 6,000; Investing activities: Subtract loss on disposal of plant OMR 4,000 Operating activities: Add back loss on disposal OMR 10,000; Investing activities: Cash received on disposal of plant OMR 6,000 Operating activities: Add back loss on disposal OMR 4,000; Investing activities: Cash received on disposal of plant OMR 6,000 Operating activities: Subtract loss on disposal OMR 4,000; Investing activities: Cash received on disposal of plant OMR 6,000

A boxland company uses the indirect method for reporting cash flows from operating activities. During an accounting period, plant which had cost OMR 60,000 some years ago was sold for OMR 6,000. The accumulated depreciation on this plant at the time of disposal was OMR 50,000. The effects of this transaction on the statement of cash flows are as follows: Operating activities: Add disposal proceeds OMR 6,000; Investing activities: Subtract loss on disposal of plant OMR 4,000 Operating activities: Add back loss on disposal OMR 10,000; Investing activities: Cash received on disposal of plant OMR 6,000 Operating activities: Add back loss on disposal OMR 4,000; Investing activities: Cash received on disposal of plant OMR 6,000 Operating activities: Subtract loss on disposal OMR 4,000; Investing activities: Cash received on disposal of plant OMR 6,000

Name: A boxland company uses the indirect method for reporting cash flows f
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Description: A boxland company uses the indirect method for reporting cash flows from operating activities. During an accounting period,plant which had cost OMR 60,000 some years ago was sold for OMR 6,000. The accumulated depreciation on this plant at thetime o

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 6E

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A boxland company uses the indirect method for reporting cash flows from operating activities. During an accounting period, plant which had cost OMR 60,000 some years ago was sold for OMR 6,000. The accumulated depreciation on this plant at the time of disposal was OMR 50,000. The effects of this transaction on the statement of cash flows are-as follows: Operating activities: Add disposal proceeds OMR 6,000; Investing activities: Subtract loss on disposal of plant OMR 4,000 Operating activities: Add back loss on disposal OMR 10,000; Investing activities: Cash received on disposal of plant OMR 6,000 Operating activities: Add back loss on disposal OMR 4,000; Investing activities: Cash received on disposal of plant OMR 6,000 Operating activities: Subtract loss on disposal OMR 4,000; Investing activities: Cash received on disposal of plant OMR 6,000
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