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:

Cartel

An association of independent businesses organized to control production, pricing, and marketing of goods to limit competition.

Competitors

Entities or firms in the same industry or market that offer similar goods or services to consumers.

Herfindahl-Hirschman Index

A measure of market concentration used to determine the level of competition within an industry, calculated by summing the squares of the market shares of each firm within the sector.

Industry

Refers to the production of goods or services within an economy, categorized into sectors such as manufacturing, services, and agriculture.