7 Sale Seaforce Manufacturing Inc. Income Statement Year Ended December 31, 20X5 Cost of goods sold 0.2 points eBook Gross Profit Operating Expenses Loss on Sale of equipment Profit from Operations Other expenses Interest Expense Profit before Income Tax Income Tax Expense Profit $340,000 $250,100 $ 89,900 $55,000 $ 2,500 $ 57,500 $ 32,400 $ 3,500. $ 28,900 $ 12,000 $ 16,900 Additional Information: 1. Operating expenses include depreciation expense of $10,000 2. Accounts Payable related to the purchase of inventory 3. Equipment that cost $12,500 was sold at a loss of $2,500 4. New equipment was purchased during the year for $8,500 5. Dividends declared and paid in 20X5 totaled $3,000 6. Common shares were sold for $12,000 cash 7. Interest payable in 20X5 was $800 greater than interest payable in 20X4 8. The company uses IFRS and do not treat dividends as part of operations Seaforce Manufacturing Inc. comparative balance sheet at December 31 20X5 0.2 7 points eBook Seaforce Manufacturing Inc. comparative balance sheet at December 31 20X5 Cash Accounts Receivable Inventory Prepaid Expenses Equipment Accumulated Depreciation Total Assets Account Payable 20X5 20X4 $ 6,450 $ 4,100 $ 72,000 $ 6,500 $110,250 $140,000 $ 1,750 1,020 $ 96,000 $100,000 - equipment $(50,000) $(42,000) $236,450 $209,620 $ 16,230 $ $ 9,900 810 $ 10 $ 10,800 $ 9,500 $ 1,800 $ 2,800 Long-term Notes Payable Common shares Retained Earnings Total Liabilities & Shareholders' Equity $ 54,500 $135,000 $ 62,000 $123,000 $ 16,310 $236,450 $ 2,410 $209,620 Interest Payable Income taxes payable Dividends Payable What is the Accumulated Depreciation on machinery sold when the indirect method is used to prepare the cash flow statement? 7 What is the Accumulated Depreciation on machinery sold when the indirect method is used to prepare the cash flow statement? 0.2 points Multiple Choice eBook $17,000 None of the other alternatives are correct $15,500 $8,000 $2,000