During 2014, Thomas Windows Completed the Following Transactions

question 94

Multiple Choice

During 2014, Thomas Windows completed the following transactions:
.Purchased equipment for $41,000 cash that will be depreciated over a 10-year life
.Sold equipment that had an original cost of $46,000 and accumulated depreciation of $43,000 for $7,000 cash
The January 1, 2014 balance in the accumulated depreciation account was $134,000 and the December 31, 2014 balance was $145,000. How much depreciation expense will Thomas Windows report on the company's 2014 statement of cash flows if the indirect method is used?

• A) $32,000
• B) $54,000
• C) $14,000
• D) $57,000