A Machine with a Cost of $130,000,current Year Depreciation Expense

question 27

Multiple Choice

A machine with a cost of $130,000,current year depreciation expense of $17,000 and accumulated depreciation of $85,000 is sold for $40,000 cash.The total amount that should be reported in the operating section of the statement of cash flow as per indirect method is:

• A)$17,000.
• B)$4,000.
• C)$57,000.
• D)$21,000.
• E)$22,000.

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Definitions:

Demand Conditions

Factors that affect consumer desire for a product or service, including income levels, tastes, and price of substitutes.

Cost Conditions

The various expenses that firms face related to the production and sale of goods or services, including raw materials, labor, and overhead costs.

Maximum Profit

The highest possible financial gain that a business can achieve from its operations.

Per Month

A time period measurement, indicating the recurrence or calculation of a particular action or data on a monthly basis.