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Lockspot Inc. purchased a machine for $100,000 on January 1, 2008. The estimated useful life was 10 years and the salvage value was zero. On
Lockspot Inc. purchased a machine for $100,000 on January 1, 2008. The estimated useful life was 10 years and the salvage value was zero. On January 1, 2016, Lockspot sells the machine, reporting a gain of $2,000. a. What is the book value of the machine on the date of sale? b. What is the cash flow amount resulting from the sale? (Note: inflows are positive and outflows are negative) VanDerMeer Co. issues a bond with principal (face value) of $50,000. The bond was issued at a discount, and the company debits the bond discount account by $2,000 at the issuance date. What is the cash flow amount resulting from this bond issuance? (Note: inflows are positive and outflows are negative). Exigent, Inc. repurchases 10,000 shares of $1 par value common stock at $15 per share. What is the cash flow amount resulting from this share repurchase? (Note: inflows are positive and outflows are negative). The Burratta Co. purchases a warehouse building with a total acquisition cost of $500,000. The company pays $100,000 cash, and signs a note to pay the remaining $400,000 over the next five years. What is the cash flow amount resulting from this purchase? (Note: inflows are positive and outflows are negative)
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