The Statements of Financial Position for King Lear Corp

question 30

Multiple Choice

The statements of financial position for King Lear Corp. at the end of 2020 and 2019 are as follows: During 2020, land was acquired in exchange for common shares (which had a market value of $ 150,000 at the time) . All equipment purchased was for cash. Equipment costing $ 15,000 was sold for $ 6,000 cash; book value of the equipment at the time of sale was $ 12,000, and the loss was included in net income. Cash dividends of $ 30,000 were declared and paid during the year. King adheres to ASPE and uses the indirect method when preparing the statement of cash flows. The cash provided by operating activities for calendar 2020 was

• A) $ 72,000.
• B) $ 78,000.
• C) $ 84,000.
• D) $ 99,000.

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Definitions:

False Imprisonment

Refers to the unlawful restraint of a person against their will by someone without legal authority or justification.

Battery

A criminal offense involving the unlawful physical act or force applied to another person, resulting in harmful or offensive contact.

Intentionally

The act of doing something deliberately or on purpose, not by accident or unintentionally.

Conversions

The act of changing the ownership or purpose of property or assets without the permission of the owner.