If ABC Inc. buys a piece of equipment for $50,000, will use it in the business for 5 years and in 5 years expects to sell it for $10,000. What should ABC Inc. show in its cash flow statement in the year of purchase?

Question

Answer

$8,000 cash inflow under investing activities

Answer

$42,000 cash outflow under investing activities

Answer

$50,000 cash outflow under investing activities

Answer

$8,000 cash outflow under investing activities

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If ABC Inc. buys a piece of equipment for $50,000, will use it in the business f...

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