On January 1,2011,Ace Electronics Paid $400,000 Cash for a Computer

question 14

Multiple Choice

On January 1,2011,Ace Electronics paid $400,000 cash for a computer that would be used to store and process its accounting information.The computer has a 5-year useful life,after which it will be worthless because it will be obsolete.What should Ace Electronics report on its Statement of Cash Flows for the year ended December 31,2011?

• A)$(400,000)cash paid for investing activities
• B)$(400,000)cash paid for financing activities
• C)$(80,000)cash paid for depreciation
• D)$(400,000)cash paid for operating activities