The Following Two Scenarios Are Independent of One Another

question 32

Essay

The following two scenarios are independent of one another.
1- An analysis of the general ledger accounts indicates that office equipment was sold for $39,600 during the year. The equipment originally cost $68,000 and had accumulated depreciation of $22,500 on the date of sale. Indicate how the elements of this transaction would be reported on the statement of cash flows using the indirect method.
2- An analysis of the general ledger accounts indicates that delivery equipment, which cost $97,000 and on which accumulated depreciation totaled $42,100 on the date of sale, was sold for $57,500 during the year. Using this information, indicate the items to be reported on the statement of cash flows.

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Definitions:

Advantaged Groups

Groups within a society or organization that enjoy more resources, rights, or privileges compared to other segments.

Commonalities

Traits, interests, or values that are shared between individuals or groups, leading to a sense of unity or agreement.

Power

The ability or capacity to influence or control the behavior of others, the course of events, or the distribution of resources.

Lower Status Rank

A position in a social hierarchy that has less prestige, authority, or influence than higher-ranked positions.