Un Company sold office equipment with a cost of $37,110 and accumulated depreciation of $32,541 for $6,720. Required a. What is the book value of the asset at the time of sale? b. What is the amount of gain or loss on the disposal? c. How would the sale affect net income (increase, decrease, no effect) and by how much? d. How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how e. How would the event affect the statement of cash flows (increase, decrease, no effect) and in what section? a. Book value b. Gain (loss) on sale c. Net income would

Un Company sold office equipment with a cost of $37,110 and accumulated depreciation of $32,541 for $6,720. Required a. What is the book value of the asset at the time of sale? b. What is the amount of gain or loss on the disposal? c. How would the sale affect net income (increase, decrease, no effect) and by how much? d. How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how e. How would the event affect the statement of cash flows (increase, decrease, no effect) and in what section? a. Book value b. Gain (loss) on sale c. Net income would

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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