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On January 1, Year 1, Bacco Company had a balance of $61,100 in its Delivery Equipment account. During Year 1, Bacco purchased delivery equipment that
On January 1, Year 1, Bacco Company had a balance of $61,100 in its Delivery Equipment account. During Year 1, Bacco purchased delivery equipment that cost $22,000. The balance in the Delivery Equipment account on December 31 , Year 1 , was $61,711. The Year 1 income statement reported a gain from the sale of equipment for $3,300. On the date of sale, accumulated depreciation on the equipment sold amounted to $10,500. Required a. Determine the original cost of the equipment that was sold during Year 1 . b. Determine the amount of cash flow from the sale of delivery equipment that should be shown in the investing activities section of the Year 1 statement of cash flows. Complete this question by entering your answers in the tabs below. Determine the original cost of the equipment that was sold during Year 1
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