Question
Lockspot Inc. purchased a machine for $125,000 on January 1, 2008. The estimated useful life was 10 years and the salvage value was $5,000. On
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Lockspot Inc. purchased a machine for $125,000 on January 1, 2008. The estimated useful life was 10 years and the salvage value was $5,000. On January 1, 2016, Lockspot sells the machine, reporting a gain of $3,000.
- What is the book value of the machine on the date of sale?
- What is the cash flow amount resulting from the sale? (Note: inflows are positive and outflows are negative)
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Introduction to Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
7th edition
978-1259675539, 125967553X, 978-1259594168, 1259594165, 78025796, 978-0078025792
