The Following Item Is Found on the Income Statement of a Corporation

question 160

Multiple Choice

The following item is found on the income statement of a corporation: Gain from sale of equipment, $5,000. The equipment sold during the year originally cost $20,000, had accumulated depreciation of $16,000 and was sold for cash. The Statement of Cash Flows should show an inflow of cash from investing activities of:

• A) $1,000.
• B) $4,000.
• C) $5,000.
• D) $9,000.

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Definitions:

Anxious

A feeling of worry, nervousness, or unease about something with an uncertain outcome.

Hostile

Exhibiting or feeling aggression and antagonism towards others.

Affiliation Motive

Being motivated by one’s relationships with others.

Power Motive

An individual's desire to exert control or influence over others or situations.