The Following Information Is from the Noncurrent Asset Portion of Gomez

question 29

Essay

The following information is from the noncurrent asset portion of Gomez Company's balance sheet.
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { December } 31$$\begin{array}{lrrrr}&2017&2016\\ \text { Property, plant, and equipment } & \$ 354,000 & \$ 300,000 & \\\text { Accumulated depreciation } & (220,000) & (190,000) \\\text { Long-term investments } & 86,000 & 62,000 &\end{array}$

The following activities occurred during 2017:
Sold equipment with a book value of $6,000 (= $26,000 cost * $20,000 accumulated depreciation)for $16,000 cash.Depreciation expense for the year totaled $50,000.
Purchased property for $80,000 cash.
Purchased long-term investments for $24,000 cash.
(1)Prepare the investing activities section of the statement of cash flows for Gomez Company for the year ended December 31,2017.
(2)Explain the change in each noncurrent asset account.

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Definitions:

Conditioned Taste Aversions

A learned aversion to a specific food or taste following a negative experience, such as illness, demonstrating a form of classical conditioning.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed, characterized by the belief that one has no control over the outcomes in their life.

Operant Learning

A method of learning that employs rewards and punishments for behavior, emphasizing the effects of consequences on behavior.

Reinforcement

In behavioral psychology, a stimulus or event that follows a behavior and increases the likelihood of the behavior's recurrence.