Emerald Co

Multiple Choice

Emerald Co.owned equipment with a book value of $72,000 that was sold during this accounting period for $18,300 in cash,and purchased new equipment for cash of $88,800.Emerald Co.would record a debit of:

A) $88,800 and a credit of $18,300 to the cash account for a net cash inflow of $70,500.
B) $88,800 and a credit of $53,700 to the cash account for a net cash inflow of $35,100.
C) $18,300 and a credit of $88,800 to the cash account for a net cash outflow of $70,500.
D) $53,700 and a credit of $88,800 to the cash account for a net cash outflow of $35,100.