STATION 71 on a statement of may be more than one answer for

STATION 71 on a statement of may be more than one answer for some tems, For an ibem that is added to net income, select \"Add,\" and for an em t select \"Deducth 331.000), separately, select \"Noncash Statement of Cash Flews (indirect Hethod) C) Issuance of a (€) Hachiery that cost $100,000 and had ammalid depredation of $4k,a00-as sold s55,000. points based on

Solution

Statement of Cash Flows Section

Effect on Net Income

Effect on Cash Flows

a.The deferred tax liability increased $100,000

b.The balance in Investment in Hoyt Co. Stock increased $12,000 as a result of using theequity method

c. Issuance of a stock dividend increased common stock $40,000 and paid-in capital $16,000

d. Amortization of bond discount, $1,600

e. Machinery that cost $100,000 and had accumulated depreciation of $48,000 was sold for$55,000

f. Issued 10,000 shares of common stock ($10 par) with a market value of $15 per share formachinery

		Statement of Cash Flows (Indirect Method)
Statement of Cash Flows Section	Disclosure	Effect on Net Income	Effect on Cash Flows
a.The deferred tax liability increased $100,000	Shown	Add	100000
b.The balance in Investment in Hoyt Co. Stock increased $12,000 as a result of using theequity method	Shown	Deduct	12000
c. Issuance of a stock dividend increased common stock $40,000 and paid-in capital $16,000	Not Shown
d. Amortization of bond discount, $1,600	Shown	Add	1600
e. Machinery that cost $100,000 and had accumulated depreciation of $48,000 was sold for$55,000	Shown	Deduct	3000 (gain)	Investing	55000
f. Issued 10,000 shares of common stock ($10 par) with a market value of $15 per share formachinery	Shown			Non cash	150000
g. Amortization of patents, $3,000	Shown	Add	3000
h.Cash dividends paid, $60,000	Shown			Financing	(60000)