Question

Additional information provided by the company includes the following: Equipment costing $60,000 was purchased for cash. Equipment with a net book value of $10,000 was sold for $16,000. Depreciation expense of $16,000 was recorded during the year. During 2018, the company repaid $43,000 of long-term notes payable. During 2018, the company borrowed $34,000 on a new long-term note payable. There were no stock retirements during the year. There were no sales of treasury stock during the year. All sales are on credit. Prepare the 2018 statement of cash flows, using the indirect method. What amount is used for gain on sale of plant assets? a) 6,000 b) (6,000) c) 16,000 d) (16,000)

          Additional information provided by the company includes the
following:
Equipment costing $60,000 was purchased for cash. Equipment with
a net book value of $10,000 was sold for $16,000. Depreciation
expense of $16,000 was recorded during the year. During 2018, the
company repaid $43,000 of long-term notes payable. During 2018, the
company borrowed $34,000 on a new long-term note payable. There
were no stock retirements during the year. There were no sales of
treasury stock during the year. All sales are on credit. Prepare
the 2018 statement of cash flows, using the indirect method.
What amount is used for gain on sale of plant assets?
a) 6,000 b) (6,000) c) 16,000 d) (16,000)

Added by Kari S.

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