Nelson Company Collected the Following Data in Its Accounting Records

question 93

Multiple Choice

Nelson Company collected the following data in its accounting records in 20X7: $\begin{array}{|l|r|}\hline \text { Income Statement } & \\\hline \text { Depreciation expense } & \$ 1,000 \\\text { Loss on sale of equipment } & \$ 3,000\\\hline \\\hline \text { Statement of Financial Position } & \\ \hline \text { Beginning balance - equipment } & \$ 12,500 \\\hline \text { Ending balance - equipment } & \$ 8,000 \\\hline \text { Beginning balance - accumulated depreciation } & \$ 2,000 \\\hline \text { Ending balance - accumulated depreciation } & \$ 2,400 \\\hline\end{array}$
No new equipment was purchased during the year. What was the cash inflow from the sale of equipment in 20X7?

• A) $600.
• B) $900.
• C) $1,000.
• D) $3,900.

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Definitions:

Imports

Goods or services brought into one country from another for sale or use.

Skiing Equipment

Gear and tools designed for use in skiing, including skis, boots, and poles.

Spring Clearance

A period usually set by retailers to clear out seasonal merchandise at reduced prices.

Collect Like Terms

An algebraic operation that entails amalgamating terms with the same variables to the identical power.