Question

Last year Ace charged $1,650,133 Depreciation on the Income Statement of Andrews. If Ace sold a...

Last year Ace charged $1,650,133 Depreciation on the Income Statement of Andrews. If Ace sold a fully depreciated piece of equipment at a loss, the effect on Andrews's financial statements would be (all other items remaining equal):

Select: 1

Increase Net Cash from operations

Decrease Net Cash from operations on the Cash Flow Statement

Just impact the Balance Sheet

No impact on Net Cash from operations

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Answer #1
Just impact the Balance Sheet
Reason:-
Entry will be
Accumulated Depreciation Dr
   Equipment Cr
Since depreciation has already been charged, therefore there will be no impact on cash flow from operation
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