Lori Company Sold an Operational Asset, a Machine, for Cash

question 21

Multiple Choice

Lori Company sold an operational asset, a machine, for cash. It originally cost $20,000. The accumulated depreciation at the date of disposal was $15,000. A gain on the disposal of $2,000 was reported. What was the cash inflow from this transaction?

• A) $4,000.
• B) $3,000.
• C) $5,000.
• D) $7,000.

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