Un Company sold office equipment with a cost of $39,000 and accumulated depreciation of $34.976 for $6,200 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 much? e. How would the event affect the statement of cash flows (inflow, outflow, no effect) and in what section? a b C d C Book value Gain (loss) on sale Net income would Total assets would Effect Section by by

Un Company sold office equipment with a cost of $39,000 and accumulated depreciation of $34.976 for $6,200 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 much? e. How would the event affect the statement of cash flows (inflow, outflow, no effect) and in what section? a b C d C Book value Gain (loss) on sale Net income would Total assets would Effect Section by by

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 10Q: If a company reports a gain/(loss) from the sale of assets, as part of the net income on the income...

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