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A Machine with a Cost of $130,000 and Accumulated Depreciation

question 183

Essay

A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $35,000 cash.
Required:
Part a.Prepare the journal entry to record this transaction.
Part b.Explain how this transaction would be reported on the statement of cash flows prepared using the indirect method.


Definitions:

Annual Annuity

A series of equal payments made at regular intervals over a period of one year.

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