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please help asap!! On September 30, 2020, Pristine Enterprises sold a large piece of equipment to Caliente Company for $100,000. Caliente paid $10,000 as a
please help asap!!
On September 30, 2020, Pristine Enterprises sold a large piece of equipment to Caliente Company for $100,000. Caliente paid $10,000 as a down payment and agreed to make annual payments of $10,000 olus interest starting in 2021. The equipment was originally purchased by Pristine on October 1 of 2014 for $500,000. It was expected to have a useful life of 8 years. Pristine uses the straight line method of depreciation. How would the equipment sale be reported in Pristine's Statement of cash flows for 2020 ? Select one: a. $10,000 positive impact on investing activities total; $90,000 disclosed as a nonoperating investing activity. b. $25,000 subtracted from net income in operating activities section; $100,000 reported as a cash inflow in investing activities section; $90,000 reported as cash outflow in financing activities section. c. $25,000 added to net income in operating activities section; $100,000 reported as a cash inflow in investing activities section; $90,000 reported as cash outflow in financing activities section. d. $25,000 subtracted from net income in operating activities section; $10,000 reported as a cash inflow in investing activities section; $90,000 reported as cash outflow in financing activities section. e. $25,000 added to net income in operating activities section; $10,000 reported as a cash inflow in investing activities section; $90,000 disclosed as a nonoperating investing activity Step by Step Solution
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