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:

Fitness Watch

A wearable device designed to monitor and record various health and fitness metrics, such as steps taken, heart rate, and calories burned.

Cut-Price Store

A retail outlet offering goods for sale at significantly reduced prices, often specializing in discounts or bulk purchasing options.

Bailment

Represents a legal relationship in commercial law where physical possession of personal property is transferred from one person to another under the agreement that the property will be returned.

Coat

An outer garment worn outdoors, typically extending below the hips and having sleeves.