Reference no: EM132962483

Abala Inc had an opening balance for machinery-cost of 26,000, closing balance for machinery cost of 59,000, opening balance accumulated depreciation machinery if 12,000, closing balance accumulated depreciation- machinery of 24,000, current year depreciation expense of 15,200, original cost of machinery sold of 5,000, accumulated depreciation of machinery sold of 3,200 and loss on sale of machinery of 1,300

Problem 1: What was the total cash inflow for sale of machinery and the total cash outflow for purchase of machinery in the period?

Option 1: Cash inflow of 1,800 and no cash outflow

Option 2: Cash inflow of 500 and no cash outflow

Option 3: Cash inflow of 5,000 and cash outflow of 38,000

Option 4: Cash inflow of 3,000 and cash outflow of 38,000

Option 5: Cash inflow of 500 and cash outflow of 38,000