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The T accounts for equipment and the related accumulated depreciation for Carla Vista Corporation are as follows: Equipment Accumulated DepreciationEquipment Beg. bal. 80,000 Beg. bal.
The T accounts for equipment and the related accumulated depreciation for Carla Vista Corporation are as follows:
Equipment | Accumulated DepreciationEquipment | |||||||||||
Beg. bal. | 80,000 | Beg. bal. | 44,500 | |||||||||
Purchases | 41,600 | Disposals | 23,670 | Disposals | 5,120 | Depreciation | 12,170 | |||||
End. bal. | 97,930 | End. bal. | 51,550 |
Operating activities: | |
Purchase of equipmentSale of equipmentLoss on sale of equipmentGain on sale of equipment | $ |
Investing activities: | |
Sale of equipmentLoss on sale of equipmentGain on sale of equipmentPurchase of equipment | $ |
In addition, Carla Vistas income statement reported a loss on the sale of equipment of $1,470. What will be reported on the cash flow statement with regard to the sale of equipment if Carla Vista uses the indirect method?
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