A Machine with a Cost of $130,000 and Accumulated Depreciation

question 127

Multiple Choice

A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

• A) $50,000.
• B) $5,000.
• C) $45,000.
• D) Zero. This is an operating activity.
• E) Zero. This is a financing activity.

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Definitions:

Hirsutism

A condition characterized by excessive hair growth on the body or face, particularly in women, often due to hormonal imbalance.

Extremities

The outermost parts of the human body, including the hands, feet, arms, and legs.

Abnormal Condition

A state in which health differs from a prescribed norm, often indicating the presence of disease or disorder.

Pancreas

An organ in the digestive system that produces enzymes and hormones, including insulin, to aid in digestion and regulate blood sugar.