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Motta Storage Company had the following balances in its Equipment and Accumulated Depreciation on Equipment accounts at the beginning and end of 2012.
During 2012, Mona engaged in the following transaction involving equipment:Sold equipment that originally cost $25,000 and had a current book value of $9,000 for$1 8,500.This was the only sale of equipment.Net income for 2012 was $380,000.
Required:
a. How much equipment-related depreciation expense did Motta Storage Company record during 2012?
b. What was the cost of equipment purchased during the year?
c. Using this limited information, prepare the operating and investing activities sections of the statement of cash flows. Here you will assume that there were no changes in current asset and current liability accounts other than cash.
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