Explore BrainMass

Explore BrainMass

    Net effect of sale of equipment

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Question 34: Alaric Corporation recently sold equipment for $35,500. The equipment was purchased five years ago for $127,000. The accumulated depreciation on the equipment on the date of sale was $78,000. Alaric uses the indirect method to prepare its statement of cash flows. What net effect will this sale have on the investing activities section of Alaric's statement of cash flows for the current year?

    $26,500 increase
    $28,500 decrease
    no effect
    $35,500 increase

    © BrainMass Inc. brainmass.com June 3, 2020, 10:10 pm ad1c9bdddf

    Solution Summary

    The solution explains how to determine the net effect in the statement of cash flows of a sale of equipment