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

question 241

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 in the operating activities section reported under the direct method is:

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

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Definitions:

The Joule

A derived unit of energy in the International System of Units (SI), equal to the energy transferred to an object when a force of one newton acts on it in the direction of its motion through a distance of one meter.

The Calorie

A unit of energy defined as the amount of heat needed to raise the temperature of one kilogram of water by one degree Celsius.

Kinetic Energy

The energy that an object possesses because of its motion, calculated by the equation 1/2 mv^2 where m is mass and v is velocity.

Temperature

A measure of the average kinetic energy of the particles in a substance, influencing its thermal state or phase.