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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
Transcribed Image Text: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
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