What amount of the gain from the sale of equipment

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Question - What amount of the gain from the sale of equipment will be reported in the investing activities section of the Statement of Cash Flows for fiscal year 2016?

The following are selected accounts from the comparative balance sheets and other data for Good, Bad & Ugly, Inc. All balances are normal.

December 31

Accounts

2016

2015

Cash

$76,105

$51,000

Land

180,000

142,500

Equipment

270,000

300,000

Accumulated Depreciation, Equipment

(75,000)

(67,500)

Long Term Notes Payable

170,000

150,000

Common Stock, $5 par

185,000

165,000

Paid in Capital in Excess of Par

32,500

0

Retained Earnings

91,450

87,500

Equipment costing $50,000 with accumulated depreciation of $30,000 was sold for $23,500 in cash.

Additional equipment was purchased by signing a new long-term note payable.

Net income for 2016 was $35,000.

Depreciation expense for the year was $37,500.

Reference no: EM131728348

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