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.
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. 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)
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Financial Accounting
Authors: LibbyShort
7th Edition
78111021, 978-0078111020
