The Following Information Is from the Noncurrent Asset Portion of Raggetti

question 40

Multiple Choice

The following information is from the noncurrent asset portion of Raggetti Company's balance sheet.
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { December } 31$
$\begin{array}{lcccc}&2017&2016\\\text { Property, plant, and equipment } & \$ 900,000 & \$ 750,000 & \\\text { Accumulated depreciation } & (417,000) & (327,000) \\\text { Long-term investments } & 189,000 & 90,000 &\end{array}$


The following activities occurred during 2017:
Sold equipment with an original cost of $120,000 and a book value of $24,000 for $21,000 cash.
Depreciation expense for the year totaled $186,000.
Purchased property for $270,000 cash.
Purchased long-term investments for $99,000 cash.
What is the amount of cash used by investing activities?

• A)$159,000
• B)$249,000
• C)$348,000
• D)$534,000
• E)None of the answer choices is correct.

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Definitions:

General Partnership

A business arrangement where two or more individuals share ownership, profits, and liabilities of a business.

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Obligations related to managing money, assets, and investments, including budgeting, investing, and managing debt.

Corporation

A legal entity separate from its owners, with rights to own assets, incur liabilities, hire employees, enter contracts, and provide protection for its shareholders.