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:

Land Differs

The concept that land has unique characteristics that affect its value and use, such as location, topography, and fertility, making it distinct from other factors of production.

Interest Rates

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Present Values

The current value of a future sum of money or stream of cash flows, discounted at a specific rate to account for its time value of money.

New Technology

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