A companys balance sheet shows beginning equipment of $30,500,000 and ending equipment of $38,000,000. During the year, the company purchased some new equipment, sold some existing equipment with a cost of $50,000 and a book value of $42,000 and realized a $2,000 gain on the sale and wrote-off $20,000 of fully depreciated equipment that it could no longer locate. How much equipment was purchased during the year?

$7,570,000

$7,500,000

$7,550,000

$7,542,000

QUESTION 2

Smiley Corp.'s transactions for the year ended December 31, 2021 included the following:

• Purchased real estate for $1,250,000.
• Borrowed $1,250,000 from a bank.
• Sold available-for-sale securities for $1,000,000.
• Paid dividends of $1,200,000.
• Issued 500 shares of common stock for $500,000.
• Purchased machinery and equipment for $250,000 cash.
• Paid $900,000 toward a bank loan.
• Reduced accounts receivable by $200,000.
• Increased accounts payable $400,000.

Smiley's net cash used in financing activities for 2021 was

$450,000

$350,000

$900,000

$850,000

QUESTION 3

Presented below is information related to Decker Manufacturing Company as of December 31, 2018:

Projected benefit obligation $1,700,000

Accumulated OCI -net gain 600,000

Accumulated OCI (Past Service Cost) 810,000

The amount for the prior service cost was related to an increase in benefits. The fair value of the pension plan assets is $1,900,000.

The pension asset / liability reported on the balance sheet at December 31, 2018 is

Pension liability of $500,000

Pension asset of $410,000

Pension asset of $200,000

Pension liability of $1,210,000