please answer the right question, 16,000 is incorrect ABC Manufacturing Inc.Income StatementYear Ended December 31, 20X4SaleCost of goods soldGross ProfitOperating ExpensesLoss on Sale of equipmentProfit from OperationsOther expensesInterest ExpenseProfit before Income TaxIncome Tax ExpenseProfitCashAccounts ReceivableInventoryPrepaid ExpensesEquipmentAccumulated DepreciationTotal AssetsAccount PayableInterest PayableIncome taxes payableDividends PayableLong-term Notes PayableABC Manufacturing Inc. comparative balance sheet at December 31-$40,000$ 2,000equipment$200,000$120,000$ 80,000Common sharesRetained EarningsTotal Liabilities & Shareholders' Equity$ 42,000$ 38,000$ 2,000$36,000$ 8,000$ 28,00020X420X3$ 4,500$ 72,000$110,000$ 1,550$ 98,000$ 4,300$ 6,500$140,000$ 1,020$100,000$(50,000)$(42,000)$236,050 $209,820$ 15,330$510$ 10,800$ 1,800$ 50,000$130,000$ 27,610$236,050 $209,820$ 9,900$10$ 9,500$ 3,800$ 65,000$120,000$ 1,610 Additional Information:1. Operating expenses include depreciation expense of $10,0002. Accounts Payable related to the purchase of inventory3. Equipment that cost $8,000 was sold at a loss of $2,0004. New equipment was purchased during the year for $6,0005. Dividends declared and paid in 20X4 totaled $2,0006. Common shares were sold for $10,000 cash7. Interest payable in 20X4 was $500 greater than interest payable in 20X3What is the Accumulated Depreciation of the machinery sold when the indirect method to prepare cash flow statements is use?Multiple Choice$10,000None of the other alternatives are correct$16,000$8,000$2,000

Name: please answer the right question, 16,000 is incorrect ABC Manufacturin
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Description: please answer the right question, 16,000 is incorrect ABC Manufacturing Inc.Income StatementYear Ended December 31, 20X4SaleCost of goods soldGross ProfitOperating ExpensesLoss on Sale of equipmentProfit from OperationsOther expensesInterest ExpenseP

Accumulated depreciation is the total amount an asset has been depreciated up until a single point.…

Business

Accounting

Additional Information: 1. Operating expenses include depreciation expense of $10,000 2. Accounts Payable related to the purchase of inventory 3. Equipment that cost $8,000 was sold at a loss of $2,000 4. New equipment was purchased during the year for $6,000 5. Dividends declared and paid in 20X4 totaled $2,000 6. Common shares were sold for $10,000 cash 7. Interest payable in 20X4 was $500 greater than interest payable in 20X3 What is the Accumulated Depreciation of the machinery sold when the indirect method to prepare cash flow statements is use? Multiple Choice $10,000 None of the other alternatives are correct $16,000 $8,000 $2,000

Additional Information: 1. Operating expenses include depreciation expense of $10,000 2. Accounts Payable related to the purchase of inventory 3. Equipment that cost $8,000 was sold at a loss of $2,000 4. New equipment was purchased during the year for $6,000 5. Dividends declared and paid in 20X4 totaled $2,000 6. Common shares were sold for $10,000 cash 7. Interest payable in 20X4 was $500 greater than interest payable in 20X3 What is the Accumulated Depreciation of the machinery sold when the indirect method to prepare cash flow statements is use? Multiple Choice $10,000 None of the other alternatives are correct $16,000 $8,000 $2,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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