accounting question 3

Accounting
Tutor: None Selected Time limit: 1 Day

i am stuck on the following problem. here is a pic of the problem

http://imgur.com/73TaNic

please include all work/how you got the answers

thanks in advance

Mar 3rd, 2015

Book value = cost - accumulated depreciation

=50000-42000=$8000

Loss on sale = sale price-Book value

=6000-8000=-$2000

Net income decreases by $2000 loss.

Total Assets decreases by sale of fixed asset to the tune of book value $8000.

Cash inflow from investing activities increases by $6000 sale proceed of asset.

Pl best my answer. 


Mar 3rd, 2015

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