Seaforce Manufacturing Inc.
	Income Statement
	Year Ended December 31, 20X5
Sale		$340,000
Cost of goods sold		$250,100
Gross Profit		$89,900
Operating Expenses	$55,000
Loss on Sale of equipment	$2,500	$57,500
Profit from Operations		$32,400
Other expenses
Interest Expense		$3,500
Profit before Income Tax		$28,900
Income Tax Expense		$12,000
Profit		$16,900

Additional Information:

1. Operating expenses include depreciation expense of $10,000
2. Accounts Payable related to the purchase of inventory
3. Equipment that cost $12,500 was sold at a loss of $2,500
4. New equipment was purchased during the year for $8,500
5. Dividends declared and paid in 20X5 totaled $3,000
6. Common shares were sold for $12,000 cash
7. Interest payable in 20X5 was $800 greater than interest payable in 20X4
8. The company uses IFRS and do not treat dividends as part of operations

Seaforce Manufacturing Inc. comparative balance sheet at December 31 20X5

	20X5	20X4
Cash	6,450	4,100
Accounts Receivable	72,000	6,500
Inventory	110,250	140,000
Prepaid Expenses	1,750	1,020
Equipment	96,000	100,000
Accumulated Depreciation - equipment	(50,000	(42,000)
Total Assets	236,450	209,620
Account Payable	16,230	9,900
Interest Payable	810	10
Income taxes payable	10,800	9,500
Dividends Payable	1,800	2,800
Long-term Notes Payable	54,500	62,000
Common shares	135,000	123,000
Retained Earnings	16,310	2,410
Total Liabilities & Shareholders' Equity	236,450	209,620

What is the Carrying amount for the machinery that was sold when the indirect method is used to prepare the cash flow statement? ______

Multiple Choice

• None of the other alternatives are correct
• $10,500
• $12,000
• $2,000
• $10,000