Question
1) ABC Corporation sold equipment with a book value of $4,000 at a loss of $2,000. In addition, ABC purchased new equipment by paying $1,900
1) ABC Corporation sold equipment with a book value of $4,000 at a loss of $2,000. In addition, ABC purchased new equipment by paying $1,900 in cash. What is ABC Corporations cash flow from investing activities?
2) ABC Corporation engaged in the following property, plant and equipment transactions during the current year:
February 1: Purchased land for $20,000. ABC plans to build a new factory on the land next year.
March 31: Sold manufacturing equipment that the company no longer needed for $30,000 cash. The equipment was purchased on January 1 of the prior year, and depreciation expense on the equipment is $500 per month. ABC recognized a gain of $1,000 on the sale.
July 15: Sold a building with a book value of $25,000, recognizing a $5,000 loss on the sale.
Assuming the property, plant and equipment transactions above were the only investing activities during the current year, what amount should be reported as cash flows from investing activities on the statement of cash flows? (Enter a negative number with parentheses.)
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