CHAPTER 23
STATEMENT OF CASH FLOWS
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
Answer No. Description
MULTIPLE CHOICE—Conceptual
Answer No. Description
Test Bank for Intermediate Accounting, Sixteenth Edition
23 – 2
MULTIPLE CHOICE—Conceptual (cont.)
Answer No. Description
MULTIPLE CHOICE—Computational
Statement of Cash Flows
23 – 3
MULTIPLE CHOICE—Computational (cont.)
Answer No. Description
MULTIPLE CHOICE—CPA Adapted
Answer No. Description
Test Bank for Intermediate Accounting, Sixteenth Edition
23 – 4
BRIEF EXERCISES
Item Description
BE23-117 Direct and indirect methods (essay).
EXERCISES
E23-118 Effects of transactions on statement of cash flows.
E23-119 Effects of transactions on statement of cash flows.
E23-120 Calculations for statement of cash flows.
E23-121 Calculations for statement of cash flows.
E23-122 Cash flows from operating activities (direct/indirect).
E23-123 Statement of cash flows (indirect method).
E23-124 Preparation of statement of cash flows (format provided).
E23-125 Classification of cash flows.
E23-126 Classification of cash flows and transactions.
E23-127 Effects of transactions on statement of cash flows.
PROBLEMS
Item Description
P23-128 Statement of cash flows (indirect method).
P23-129 Statement of cash flows (direct/indirect).
P23-130 A complex statement of cash flows (indirect method).
CHAPTER LEARNING OBJECTIVES
1. Describe the usefulness and format of the statement of cash flows.
2. Prepare a statement of cash flows.
3. Contrast the direct and indirect methods of calculating net cash flow from operating
activities.
4. Discuss special problems in preparing a statement of cash flows.
5. Explain the use of a worksheet in preparing a statement of cash flows.
6. Compare the statement of cash flows under GAAP and IFRS.
Statement of Cash Flows
23 – 5
SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY
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TRUE-FALSE STATEMENTS
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MULTIPLE CHOICE QUESTIONS
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BRIEF EXERCISES
2, 3
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EXERCISES
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2, 3,
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PROBLEMS
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Test Bank for Intermediate Accounting, Sixteenth Edition
23 – 6
TRUE FALSE—Conceptual
1. The primary purpose of the statement of cash flows is to provide cash-basis information
about the company’s operating, investing, and financing activities.
2. The statement of cash flows provides information to help investors and creditors assess
the cash and noncash investing and financing transactions during the period.
3. Companies classify some cash flows relating to investing or financing activities as
operating activities.
4. The first step in the preparation of the statement of cash flows is to determine the net cash
flow from operating activities.
5. The net increase (decrease) in cash reported on the statement of cash flows should
reconcile the beginning and ending cash balances reported in the comparative balance
sheets.
6. The FASB encourages the use of the indirect method over the direct method.
7. When accounts receivable decrease during a period, cash-basis revenues are higher than
revenues reported on an accrual basis.
8. When prepaid expenses decrease during a period, expenses on the accrual-basis are
lower than they are on a cash-basis.
9. Under the accrual basis of accounting, net income is usually the same as net cash flow
from operating activities.
10. A company can convert net income to net cash flow from operating activities through
either the direct method or the indirect method.
11. Income from an investment in common stock using the equity method is added to net
income in computing net cash provided from operating activities.
Statement of Cash Flows
23 – 7
12. Cash receipts from customers are computed by adding a decrease in accounts receivable
to revenue from sales.
13. Cash payments for operating expenses are computed by subtracting an increase in
prepaid expenses and a decrease in accrued expenses payable from operating expenses.
14. The direct method, also called the reconciliation method, reports cash receipts and cash
disbursements from operating activities.
15. The indirect method adjusts net income for items that affected reported net income but did
not affect cash.
16. A company should add back bond premium amortization to net income to arrive at net
cash flow from operating activities.
17. Companies report the cash flows from purchases and sales of trading securities as cash
flows from operating activities.
18. Noncash investing and financing activities are disclosed either in a separate schedule or
in a separate note to the financial statements.
19. When numerous adjustments are necessary, companies often use a cash flow worksheet
instead of preparing a statement of cash flows.
20. The issuance of stock dividends is entered on the cash flow worksheet, but is not reported
in the statement of cash flows.
True-False Answers—Conceptual
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Test Bank for Intermediate Accounting, Sixteenth Edition
23 – 8
MULTIPLE CHOICE—Conceptual
21. An objective of the statement of cash flows is to
a. disclose changes during the period in all asset and all equity accounts.
b. disclose the change in working capital during the period.
c. provide information about the operating, investing, and financing activities of an entity
during a period.
d. None of these answers are correct.
22. The primary purpose of the statement of cash flows is to provide information
a. about the operating, investing, and financing activities of an entity during a period.
b. that is useful in assessing future cash flow prospects.
c. about the cash receipts and cash payments of an entity during a period.
d. about the entity’s ability to meet its obligations and to pay dividends.
S23. Of the following questions, which one would not be answered by the statement of cash
flows?
a. Where did the cash come from during the period?
b. What was the cash used for during the period?
c. Were all the cash expenditures of benefit to the company during the period?
d. What was the change in the cash balance during the period?
S24. The first step in the preparation of the statement of cash flows requires the use of
information included in which comparative financial statements?
a. Statements of cash flows
b. Balance sheets
c. Income statements
25. Cash equivalents are
a. treasury bills, commercial paper, and money market funds purchased with excess
cash.
b. investments with original maturities of three months or less.
c. readily convertible into known amounts of cash.
d. All of these answers are correct.
26. A company borrows $10,000 and signs a 90-day nontrade note payable. In preparing a
statement of cash flows (indirect method), this event would be reflected as a(n)
a. addition adjustment to net income in the cash flows from operating activities section.
b. cash outflow from investing activities.
c. cash inflow from investing activities.
d. cash inflow from financing activities.
Statement of Cash Flows
23 – 9
P27. Xanthe Corporation had the following transactions occur in the current year:
1. Cash sale of merchandise inventory.
2. Sale of delivery truck at book value.
3. Sale of Xanthe common stock for cash.
4. Issuance of a note payable to a bank for cash.
5. Sale of a security held as an available–for-sale investment.
6. Collection of loan receivable.
How many of the above items will appear as a cash inflow from investing activities on a
statement of cash flows for the current year?
a. Five items
b. Four items
c. Three items
d. Two items
P28. Which of the following would be classified as a financing activity on a statement of cash
flows?
a. Declaration and distribution of a stock dividend
b. Payment of a bond payable
c. Sale of a loan receivable
d. Payment of interest to a creditor
S29. The amortization of bond premium on long-term debt should be presented in a statement
of cash flows (using the indirect method for operating activities) as a(n)
a. addition to net income.
b. deduction from net income.
c. investing activity.
d. financing activity.
S30. Crabbe Company reported $80,000 of selling and administrative expenses on its income
statement for the past year. The company had depreciation expense and an increase in
prepaid expenses associated with the selling and administrative expenses for the year.
Assuming use of the direct method, how would these items be handled in converting the
accrual based selling and administrative expenses to the cash basis?
Increase in
Depreciation Prepaid Expenses
a. Deducted From Deducted From
b. Added To Added To
c. Deducted From Added To
d. Added To Deducted From
Test Bank for Intermediate Accounting, Sixteenth Edition
23 – 10
S31. To arrive at net cash provided by operating activities, it is necessary to report revenues
and expenses on a cash basis. This is done by
a. re-recording all income statement transactions that directly affect cash in a separate
cash flow journal.
b. estimating the percentage of income statement transactions that were originally
reported on a cash basis and projecting this amount to the entire array of income
statement transactions.
c. eliminating the effects of income statement transactions that did not result in a
corresponding increase or decrease in cash.
d. eliminating all transactions that have no current or future effect on cash, such as
depreciation, from the net income computation.
32. In a statement of cash flows, the cash flows from investing activities section should report
a. the issuance of common stock in exchange for a factory building.
b. stock dividends received.
c. a major repair to machinery charged to accumulated depreciation.
d. the assignment of accounts receivable.
33. When preparing a statement of cash flows (indirect method), an increase in ending
inventory over beginning inventory will result in an adjustment to reported net earnings
because
a. cash was increased while cost of goods sold was decreased.
b. cost of goods sold on an accrual basis is lower than on a cash basis.
c. acquisition of inventory is an investment activity.
d. inventory purchased during the period was less than inventory sold resulting in a net
cash increase.
34. When preparing a statement of cash flows, a decrease in accounts receivable during a
period would cause which one of the following adjustments in determining cash flow from
operating activities?
Direct Method Indirect Method
a. Increase Decrease
b. Decrease Increase
c. Increase Increase
d. Decrease Decrease
35. In determining net cash flow from operating activities, a decrease in accounts payable
during a period
a. means that income on an accrual basis is less than income on a cash basis.
b. requires an addition adjustment to net income under the indirect method.
c. requires an increase adjustment to cost of goods sold under the direct method.
d. requires a decrease adjustment to cost of goods sold under the direct method.
Statement of Cash Flows
23 – 11
36. When preparing a statement of cash flows, an increase in accounts payable during a
period would require which of the following adjustments in determining cash flows from
operating activities?
Indirect Method Direct Method
a. Increase Decrease
b. Decrease Increase
c. Increase Increase
d. Decrease Decrease
37. When preparing a statement of cash flows, a decrease in prepaid insurance during a
period would require which of the following adjustments in determining cash flows from
operating activities?
Indirect Method Direct Method
a. Increase Decrease
b. Decrease Increase
c. Increase Increase
d. Decrease Decrease
38. When preparing a statement of cash flows, the following are used for which method in
determining cash flows from operating activities?
Gross Accounts Receivable Net Accounts Receivable
a. Indirect Direct
b. Direct Indirect
c. Direct Direct
d. Neither Indirect
39. Which of the following statements about the statement of cash flows is correct?
a. The indirect method starts with income from continuing operations.
b. The direct method is known as the reconciliation method.
c. The direct method is more consistent with the primary purpose of the statement of
cash flows.
d. All of these answers are correct.
40. When using the indirect method to prepare the operating section of a statement of cash
flows, which of the following is added to net income to compute cash provided by/used by
operating activities?
a. Increase in accounts receivable.
b. Gain on sale of land.
c. Amortization of patent.
d. All of these are added to net income to arrive at cash flow from operating activities.
Test Bank for Intermediate Accounting, Sixteenth Edition
23 – 12
41. When using the indirect method to prepare the operating section of a statement of cash
flows, which of the following is deducted from net income to compute cash provided
by/used by operating activities?
a. Decrease in accounts receivable.
b. Gain on sale of land.
c. Amortization of patent.
d. All of these are deducted from net income to arrive at cash flow from operating
activities.
42. Which of the following is false concerning the statement of cash flows?
a. When pension expense exceeds cash funding, the difference is deducted from
investing activities on the statement of cash flows.
b. The FASB requires companies to classify all income taxes paid as operating cash
outflows.
c. Under GAAP, the purchase of land by issuing stock will be shown as a cash outflow
under investing activities and a cash inflow under financing activities.
d. All of these are true concerning the statement of cash flows.
43. An increase in inventory balance would be reported in a statement of cash flows using the
indirect method (reconciliation method) as a(n)
a. addition to net income in arriving at net cash flow from operating activities.
b. deduction from net income in arriving at net cash flow from operating activities.
c. cash outflow from investing activities.
d. cash outflow from financing activities.
44. A statement of cash flows typically would not disclose the effects of
a. capital stock issued at an amount greater than par value.
b. stock dividends declared.
c. cash dividends paid.
d. a purchase and immediate retirement of treasury stock.
45. When preparing a statement of cash flows (indirect method), which of the following is not
an adjustment to reconcile net income to net cash provided by operating activities?
a. A change in interest payable
b. A change in dividends payable
c. A change in income taxes payable
d. All of these are adjustments.
Statement of Cash Flows
23 – 13
46. Declaration of a cash dividend on common stock affects cash flows from operating
activities under the direct and indirect methods as follows:
Direct Method Indirect Method
a. Outflow Inflow
b. Inflow Inflow
c. Outflow Outflow
d. No effect No effect
47. Dolan Company reports its income from investments under the equity method and
recognized income of $25,000 from its investment in Moss Co. during the current year,
even though no dividends were declared or paid by Moss during the year. On Dolan’s
statement of cash flows (indirect method), the $25,000 should
a. not be shown.
b. be shown as cash inflow from investing activities.
c. be shown as cash outflow from financing activities.
d. be shown as a deduction from net income in the cash flows from operating activities
section.
48. In reporting unusual items on a statement of cash flows (indirect method), the
a. gross amount of an unusual gain should be deducted from net income.
b. net of tax amount of an unusual gain should be added to net income.
c. net of tax amount of an unusual gain should be deducted from net income.
d. gross amount of an unusual gain should be added to net income.
49. Which of the following is shown on a statement of cash flows?
a. A stock dividend
b. A stock split
c. An appropriation of retained earnings
d. None of these answers are correct.
S50. How should significant noncash transactions be reported in the statement of cash flows
according to FASB Statement No. 95?
a. They should be incorporated in the statement of cash flows in a section labeled,
“Significant Noncash Transactions.”
b. Such transactions should be incorporated in the section (operating, financing, or
investing) that is most representative of the major component of the transaction.
c. These noncash transactions are not to be incorporated in the statement of cash flows.
They may be summarized in a separate schedule at the bottom of the statement or
appear in a separate supplementary schedule to the financials.
d. They should be handled in a manner consistent with the transactions that affect cash
flows.
Test Bank for Intermediate Accounting, Sixteenth Edition
23 – 14
Multiple Choice Answers—Conceptual
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MULTIPLE CHOICE—Computational
Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA.
One statement that the enterprise is anxious to have prepared is a statement of cash flows.
Financial statements of Harlan Mining Co. for 2019 and 2018 are provided below.
BALANCE SHEETS
12/31/19 12/31/18
Cash $408,000 $ 192,000
Accounts receivable 360,000 216,000
Inventory 384,000 480,000
Property, plant and equipment $608,000 $960,000
Less accumulated depreciation (320,000) 288,000 (304,000) 656,000
$1,440,000 $1,544,000
Accounts payable $ 176,000 $ 96,000
Income taxes payable 352,000 392,000
Bonds payable 360,000 600,000
Common stock 216,000 216,000
Retained earnings 336,000 240,000
$1,440,000 $1,544,000
INCOME STATEMENT
For the Year Ended December 31, 2019
Sales revenue $8,400,000
Cost of sales 7,152,000
Gross profit 1,248,000
Selling expenses $600,000
Administrative expenses 192,000 792,000
Income from operations 456,000
Interest expense 72,000
Income before taxes 384,000
Income taxes 96,000
Net income $ 288,000
The following additional data were provided:
1. Dividends for the year 2019 were $192,000.
2. During the year, equipment was sold for $240,000. This equipment cost $352,000 originally
and had a book value of $288,000 at the time of sale. The loss on sale was incorrectly
charged to cost of sales.
3. All depreciation expense is in the selling expense category.
Statement of Cash Flows
23 – 15
51.The net cash provided by operating activities is
a. $408,000.
b. $288,000.
c. $240,000.
d. $200,000.
Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA.
One statement that the enterprise is anxious to have prepared is a statement of cash flows.
Financial statements of Harlan Mining Co. for 2019 and 2018 are provided below.
BALANCE SHEETS
12/31/19 12/31/18
Cash $408,000 $ 192,000
Accounts receivable 360,000 216,000
Inventory 384,000 480,000
Property, plant and equipment $608,000 $960,000
Less accumulated depreciation (320,000) 288,000 (304,000) 656,000
$1,440,000 $1,544,000
Accounts payable $ 176,000 $ 96,000
Income taxes payable 352,000 392,000
Bonds payable 360,000 600,000
Common stock 216,000 216,000
Retained earnings 336,000 240,000
$1,440,000 $1,544,000
INCOME STATEMENT
For the Year Ended December 31, 2019
Sales revenue $8,400,000
Cost of sales 7,152,000
Gross profit 1,248,000
Selling expenses $600,000
Administrative expenses 192,000 792,000
Income from operations 456,000
Interest expense 72,000
Income before taxes 384,000
Income taxes 96,000
Net income $ 288,000
The following additional data were provided:
1. Dividends for the year 2019 were $192,000.
2. During the year, equipment was sold for $240,000. This equipment cost $352,000 originally
and had a book value of $288,000 at the time of sale. The loss on sale was incorrectly
charged to cost of sales.
3. All depreciation expense is in the selling expense category.
Test Bank for Intermediate Accounting, Sixteenth Edition
23 – 16
52. The net cash provided (used) by investing activities is
a. $(352,000).
b. $48,000.
c. $240,000.
d. $(288,000).
Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA.
One statement that the enterprise is anxious to have prepared is a statement of cash flows.
Financial statements of Harlan Mining Co. for 2019 and 2018 are provided below.
BALANCE SHEETS
12/31/19 12/31/18
Cash $408,000 $ 192,000
Accounts receivable 360,000 216,000
Inventory 384,000 480,000
Property, plant and equipment $608,000 $960,000
Less accumulated depreciation (320,000) 288,000 (304,000) 656,000
$1,440,000 $1,544,000
Accounts payable $ 176,000 $ 96,000
Income taxes payable 352,000 392,000
Bonds payable 360,000 600,000
Common stock 216,000 216,000
Retained earnings 336,000 240,000
$1,440,000 $1,544,000
INCOME STATEMENT
For the Year Ended December 31, 2019
Sales revenue $8,400,000
Cost of sales 7,152,000
Gross profit 1,248,000
Selling expenses $600,000
Administrative expenses 192,000 792,000
Income from operations 456,000
Interest expense 72,000
Income before taxes 384,000
Income taxes 96,000
Net income $ 288,000
The following additional data were provided:
1. Dividends for the year 2019 were $192,000.
2. During the year, equipment was sold for $240,000. This equipment cost $352,000 originally
and had a book value of $288,000 at the time of sale. The loss on sale was incorrectly
charged to cost of sales.
3. All depreciation expense is in the selling expense category.
Statement of Cash Flows
23 – 17
53. Under the direct method, the cash received from customers is
a. $8,544,000.
b. $8,256,000.
c. $8,400,000.
d. $8,440,000.
Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA.
One statement that the enterprise is anxious to have prepared is a statement of cash flows.
Financial statements of Harlan Mining Co. for 2019 and 2018 are provided below.
BALANCE SHEETS
12/31/19 12/31/18
Cash $408,000 $ 192,000
Accounts receivable 360,000 216,000
Inventory 384,000 480,000
Property, plant and equipment $608,000 $960,000
Less accumulated depreciation (320,000) 288,000 (304,000) 656,000
$1,440,000 $1,544,000
Accounts payable $ 176,000 $ 96,000
Income taxes payable 352,000 392,000
Bonds payable 360,000 600,000
Common stock 216,000 216,000
Retained earnings 336,000 240,000
$1,440,000 $1,544,000
INCOME STATEMENT
For the Year Ended December 31, 2019
Sales revenue $8,400,000
Cost of sales 7,152,000
Gross profit 1,248,000
Selling expenses $600,000
Administrative expenses 192,000 792,000
Income from operations 456,000
Interest expense 72,000
Income before taxes 384,000
Income taxes 96,000
Net income $ 288,000
The following additional data were provided:
1. Dividends for the year 2019 were $192,000.
2. During the year, equipment was sold for $240,000. This equipment cost $352,000 originally
and had a book value of $288,000 at the time of sale. The loss on sale was incorrectly
charged to cost of sales.
3. All depreciation expense is in the selling expense category.
Test Bank for Intermediate Accounting, Sixteenth Edition
23 – 18
54. Under the direct method, the total taxes paid is
a. $96,000.
b. $40,000.
c. $56,000.
d. $136,000.
Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA.
One statement that the enterprise is anxious to have prepared is a statement of cash flows.
Financial statements of Harlan Mining Co. for 2019 and 2018 are provided below.
BALANCE SHEETS
12/31/19 12/31/18
Cash $408,000 $ 192,000
Accounts receivable 360,000 216,000
Inventory 384,000 480,000
Property, plant and equipment $608,000 $960,000
Less accumulated depreciation (320,000) 288,000 (304,000) 656,000
$1,440,000 $1,544,000
Accounts payable $ 176,000 $ 96,000
Income taxes payable 352,000 392,000
Bonds payable 360,000 600,000
Common stock 216,000 216,000
Retained earnings 336,000 240,000
$1,440,000 $1,544,000
INCOME STATEMENT
For the Year Ended December 31, 2019
Sales revenue $8,400,000
Cost of sales 7,152,000
Gross profit 1,248,000
Selling expenses $600,000
Administrative expenses 192,000 792,000
Income from operations 456,000
Interest expense 72,000
Income before taxes 384,000
Income taxes 96,000
Net income $ 288,000
The following additional data were provided:
1. Dividends for the year 2019 were $192,000.
2. During the year, equipment was sold for $240,000. This equipment cost $352,000 originally
and had a book value of $288,000 at the time of sale. The loss on sale was incorrectly
charged to cost of sales.
3. All depreciation expense is in the selling expense category.
Statement of Cash Flows
23 – 19
55. The net cash provided (used) by financing activities is
a. $(240,000).
b. $48,000.
c. $(432,000).
d. $192,000.
56. During 2018, Stout Inc. had the following activities related to its financial operations:
Carrying value of convertible preferred stock in Stout,
converted into common shares of Stout $ 540,000
Payment in 2018 of cash dividend declared in 2017 to
preferred shareholders 279,000
Payment for the early retirement of long-term bonds payable
(carrying amount $3,930,000) 3,975,000
Proceeds from the sale of treasury stock (on books at cost of $387,000) 450,000
The amount of net cash used in financing activities to appear in Stout’s statement of cash
flows for 2018 should be
a. $2,985,000.
b. $3,264,000.
c. $3,804,000.
d. $3,822,000.
57. Hager Company sold some of its plant assets during 2018. The original cost of the plant
assets was $900,000 and the accumulated depreciation at date of sale was $840,000.
The proceeds from the sale of the plant assets were $90,000. The information concerning
the sale of the plant assets should be shown on Hager’s statement of cash flows (indirect
method) for the year ended December 31, 2018, as a(n)
a. subtraction from net income of $30,000 and a $60,000 increase in cash flows from
financing activities.
b. addition to net income of $30,000 and a $90,000 increase in cash flows from investing
activities.
c. subtraction from net income of $30,000 and a $90,000 increase in cash flows from
investing activities.
d. addition of $90,000 to net income.
58. An analysis of the machinery accounts of Noller Company for 2018 is as follows:
Machinery, Net of
Accumulated Accumulated
Machinery Depreciation Depreciation
Balance at January 1, 2018 $500,000 $125,000 $375,000
Purchases of new machinery in 2018
for cash 200,000 — 200,000
Depreciation in 2018 — 100,000 (100,000)
Balance at Dec. 31, 2018 $700,000 $225,000 $475,000
Test Bank for Intermediate Accounting, Sixteenth Edition
23 – 20
The information concerning Noller’s machinery accounts should be shown in Noller’s
statement of cash flows (indirect method) for the year ended December 31, 2018, as a(n)
a. subtraction from net income of $100,000 and a $200,000 decrease in cash flows from
financing activities.
b. addition to net income of $100,000 and a $200,000 decrease in cash flows from
investing activities.
c. $100,000 increase in cash flows from financing activities.
d. $200,000 decrease in cash flows from investing activities.
59. Equipment which cost $426,000 and had accumulated depreciation of $228,000 was sold
for $222,000. This transaction should be shown on the statement of cash flows (indirect
method) as a(n)
a. addition to net income of $24,000 and a $222,000 cash inflow from financing activities.
b. deduction from net income of $24,000 and a $198,000 cash inflow from investing
activities.
c. deduction from net income of $24,000 and a $222,000 cash inflow from investing
activities.
d. addition to net income of $24,000 and a $198,000 cash inflow from financing activities.
60. During 2018, equipment was sold for $468,000. The equipment cost $786,000 and had a
book value of $432,000. Accumulated Depreciation—Equipment was $2,061,000 at
12/31/17 and $2,205,000 at 12/31/18. Depreciation expense for 2018 was
a. $144,000.
b. $288,000.
c. $498,000.
d. $576,000.
Equipment that cost $875,000 and had a book value of $390,000 was sold for $450,000. Data
from the comparative balance sheets are:
12/31/18 12/31/17
Equipment $5,400,000 $4,875,000
Accumulated Depreciation 1,650,000 1,425,000
61. Depreciation expense for 2018 was
a. $770,000.
b. $710,000.
c. $135,000.
d. $90,000.