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:

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