Equipment with a Cost of $10,000 and a Book Value

question 36

Multiple Choice

Equipment with a cost of $10,000 and a book value of $3,000 was sold during the year for cash of $9,000.Additional equipment was purchased during the year for cash.Use the information above to answer the question below.The company uses the indirect method in preparing the statement of cash flows.What is the amount of depreciation expense that will be reported in the operating activities section of the statement?

• A)$4,000
• B)$11,000
• C)$7,000
• D)$10,000

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Definitions:

Conversion Disorder

A disorder classified in the group of somatic symptom and related disorders in DSM-5, characterized by motor symptoms or disturbances in sensory functioning that appear to be a result of a neurological problem, but for which no physical cause can be found.

Dissociative Identity Disorder

A psychiatric disorder characterized by the presence of two or more distinct personality states within the same individual, often as a result of severe trauma.

SSRIs

Selective Serotonin Reuptake Inhibitors, a class of drugs often prescribed for depression and anxiety disorders, which work by increasing serotonin levels in the brain.

Antidepressants

Medications prescribed to treat depressive disorders, anxiety disorders, and sometimes chronic pain, by altering chemical levels in the brain such as serotonin and norepinephrine.