A plant asset with a cost of $40,300 and accumulated depreciation of $34,550 is sold for $6,700.
Required:
(a) What is the book value of the asset at the time of sale? (Amounts to be deducted should be entered with a minus sign. Omit the "$" sign in your response.) Historical Cost $ Book Value $
(b) What is the amount of gain or loss on the disposal? (Amounts to be deducted and negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.) Sales Price $
(c) How would the sale affect net income (increase, decrease, no effect) and by how much? (Input the amount as positive value. If no effect enter "0". Omit the "$" sign in your response.) Net income would by $ in the year of the sale.
(d) How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how much? (Input all amounts as positive values. If no effect enter "0". Omit the "$" sign in your response.) Total assets would by $ . Cash would by $ ; plant assets would by $ ; and accumulated depreciation would by $ .
(e) How would the event affect the statement of cash flows (inflow, outflow, no effect) and in what section? (Input the amount as positive value. If no effect enter "0". Omit the "$" sign in your response.) Cash flow from activities would by $ (Inflow from Investing Activities)