Question

Innovations Camera Co. sold equipment with a cost of $ 18,000 and accumulated depreciation of $ 9,000 for an amount that resulted in a gain of $ 5,000. What amount should Innovations report on the statement of cash flows as​ "proceeds from sale of plant​ assets"?

Answer 1

Answer:

$14,000

Explanation:

Data provided in the question:

Cost of the equipment sold = $18,000

Accumulated depreciation = $9,000

Gain from the sales of equipment = $5,000

Now,

Proceeds from sale of plant​ assets = Book value + Gain

also,

Book value = Cost of the equipment - Accumulated depreciation

= $18,000 - $9,000

= $9,000

Therefore,

Proceeds from sale of plant​ assets = $9,000 + $5,000

= $14,000