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

question 164

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

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Definitions:

Independent Variables

Variables in an analysis that are manipulated or categorized to observe their effect on the dependent variable.

T-distribution

A probability distribution that arises when estimating the mean of a normally distributed population in situations where the sample size is small and the population standard deviation is unknown.

Regression Coefficients

Values that represent the amount of change in the dependent variable for a one-unit change in an independent variable in a regression analysis.

Stepwise Regression

A method of regression analysis in which the choice of predictive variables is carried out by an automatic procedure, often involving the selection of variables based on statistical criteria.