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On January 1, 2013, Bacco Company had a balance of $72,350 in its Delivery Equipment account. During 2013, Bacco purchased delivery equipment that cost $22,100. The balance in the Delivery Equipment account on December 31, 2013, was $69,400. The 2013 income statement reported a gain from the sale of equipment for $5,000. On the date of sale, accumulated depreciation on the equipment sold amounted to $22,000.
Required:
a. Determine the original cost of the equipment that was sold during 2013.
b. Determine the amount of cash flow from the sale of delivery equipment that should be shown in the investing activities section of the 2013 statement of cash flows.
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