Question

Question 2.0 point The talowing data relates to Laurier Inc. for the year 12 Opening cast of equipment S 800000 Opening aandated depreciation of equipment $350000 Purtres del equipment during the year $ 400000 Cain ver los Hengele of equipment S-5000 Depoldan esperse for the year $ 2000 lading us at egipment $ 17000 1 todo estudantes deprecation of equipment $2000 There were no the transactions impeting long term assets during the year Cute hain Cash Pows for the year

Answer 1

Answer :

Investing Cash flows for the year

$ 945,000

Calculation :

Net cash flows from investing activities = Amount of Equipment Sold

	Amount of sale of equipment
	Cost of equipment sold	WN 1	$1,283,000
Less:	Accumulated depreciation on equipment sold	WN 2	-332,000
			951,000
Less:	Loss on sale of equipment (given)		-6,000
	Amount of Sale		945,000

Working notes :

1.	Equipment account
		Debit		Credit
	opening cost	8,00,000	Ending cost	1,17,000
	Purchases during the year	6,00,000	cost of equipment sold ( Balancing figure )	12,83,000
		14,00,000		14,00,000
2.	Accumulated depreciation
		Debit		Credit
	ending balance	20,000	opening balance	3,50,000
	Accumulated depreciation on equipment sold ( balancing figure )	3,32,000	Depreciation for the year	2,000
		3,52,000		3,52,000

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