est: Test 3 Time 01:13:14SubmitT n: 2 pts This Test: 50 pts poss company aoquire
ID: 2535054 • Letter: E
Question
est: Test 3 Time 01:13:14SubmitT n: 2 pts This Test: 50 pts poss company aoquired $215,800 of plant assets durling tho year. How much will be reported as cash neceived from the sale of equipment in the investing acivilties section of the statement of cash lows? O A. The cash received upon the sale of the equipment was $243650. OB? The cash received upon the sale of the The cash fucerved upon he sale ofts equprent wns S264660 The cash teceived upon the sale orthe equement was $232.250. OD? 6 2 2 3Explanation / Answer
Answer:
Beginning plant assets + acquisition – depreciation – book value of asset sold = Ending plant assets
$7,34550 + $215,800 - $52,400 – BV = $6,60,000
BV = $2,37,950
Cash receipt = BV – loss on sale
$2,37,950 - $5,700
$2,32,250
The right option is D, the cash received on sale of equipment is $232250.
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