Colosi Corporation's Comparative Balance Sheet Appears Below: the Company's

question 99

Multiple Choice

Colosi Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was $3,000 and its cash dividends were $1,000. It did not sell or retire any property, plant, and equipment during the year.
-The company's net cash used in investing activities is:

• A)$41,000
• B)$5,000
• C)$9,000
• D)$18,000

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Definitions:

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since the asset was acquired and made available for use.

Salvage Value

The prognosticated worth of an asset at the close of its operational period.

Useful Life

The estimated duration of time that an asset is expected to be productive or useful, beyond which it is likely to be inefficient or obsolete.

Double-declining-balance Method

An accelerated depreciation method that doubles the straight-line depreciation rate and applies it to the undepreciated balance at the start of each period.