What will report on its income statement

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Reference no: EM131593500

On January 1, 2009, SK Company pays $205,000 cash for factory equipment that has an estimated useful life of 10 years and an expected residual value of $5,000. What will SK report on its income statement for the year ended December 31, 2010?

Financing activity cash outflow of $ (20,000)

Investing activity cash outflow of $ (20,000)

Cash payment of $205,000

Depreciation expense of $20,000

Reference no: EM131593500

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