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Sagot :
Solution :
The carrying value of the asset = [tex]5000-47000[/tex]
[tex]= 3000[/tex]
Equipment that is sold for [tex]5000[/tex], therefore, the profit is [tex]2000.[/tex]
The net income gain on the sale - increase, the company is getting a gain from the sale.
The cash from the investing activities-increased. Thus the proceeds from the sale of the assets are recorded as the cash inflow.
The cash from the operating activities -- no change. While we calculate the operating cashflow, the gain on the sale of the assets added back to the income. So there is no change in the total.
The total assets -- increased. The carrying value will be zero after the sale, however, the cash on the balance sheet is then increased and it also captures gain. Now in order to balance the both sides, the net income increases the retained earnings section.
The net income gain on the sale - increase, the company is getting a gain from the sale.
Solution:-
The carrying value of the asset =Original Cost-Accumulated Depreciation
The carrying value of the asset=$50,000-$47,000
The carrying value of the asset =$3,000
Equipment that is sold for $3,000, therefore, the profit is $2,000.
The cash from the investing activities-increased. Thus the proceeds from the sale of the assets are recorded as the cash inflow.
The cash from the operating activities -- no change. While we calculate the operating cashflow, the gain on the sale of the assets added back to the income. So, there is no change in the total.
The total assets -- increased. The carrying value will be zero after the sale, however, the cash on the balance sheet is then increased and it also captures gain. Now in order to balance the both sides, the net income increases the retained earnings section.
To know more about Old equipment, refer to the link:
https://brainly.com/question/13992664
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