The three accounts shown below appear in the general ledger of Herrick Corp. during 2017.EquipmentDate Debit Credit BalanceJan. 1 Balance 160,000July 31 Purchase of equipment 70,000 230,000Sept.2 Cost of equipment constructed 53,000 283,000Nov. 10 Cost of equipment sold 49,000 234,000Accumulated Depreciation—EquipmentDate Debit Credit BalanceJan. 1 Balance 71,000Nov. 10 Accumulated depreciation 30,000 41,000 on equipment soldDec. 31 Depreciation for year 28,000 69,000Retained EarningsDate Debit Credit BalanceJan. 1 Balance 105,000Aug. 23 Dividends (cash) 14,000 91,000Dec. 31 Net income 77,000 168,000Instructions:1. From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The loss on disposal of equipment was $7,000. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $53,000.)2. Prepare statement of cash flows and compute free cash flow.

Nell and kirby are in the process of negotiating their divorce agreement. what should be the tax consequences to nell and kirby if the following, considered individually, became part of the agreement? a. in consideration for her one-half interest in their personal residence, kirby will transfer to nell stock with a value of $200,000 and $50,000 of cash. kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. they purchased the residence three years ago for $300,000.nell's basis for the stock is $ xkirby's basis in the house is $ xb. nell will receive $1,000 per month for 120 months. if she dies before receiving all 120 payments, the remaining payments will be made to her estate. the payments (qualify, do not qualify) as alimony and are (included in, excluded from) nell's gross income as they are received. c. nell is to have custody of their 12-year-old son, bobby. she is to receive $1,200 per month until bobby (1) dies or (2) attains age 21 (whichever occurs first). after either of these events occurs, nell will receive only $300 per month for the remainder of her life.$ x per month is alimony that is (included in, excluded from) nell's gross income, and the remaining $ x per month is considered (child support, property settlement) and is (nontaxable, taxable) to nell.