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

question 183

Essay

A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $35,000 cash.
Required:
Part a.Prepare the journal entry to record this transaction.
Part b.Explain how this transaction would be reported on the statement of cash flows prepared using the indirect method.

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Definitions:

Histamine

A compound involved in local immune responses, regulating physiological function in the gut and acting as a neurotransmitter.

Heparin

An anticoagulant medication used to prevent and treat blood clots, commonly administered intravenously or subcutaneously.

Inflammation

The body's response to injury or infection, marked by redness, warmth, swelling, and sometimes pain.

Deoxyhemoglobin

A type of hemoglobin that is not carrying oxygen. It is darker red in color than hemoglobin.