A Machine with a Cost of $130,000,accumulated Depreciation of $85,000,and

question 69

Multiple Choice

A machine with a cost of $130,000,accumulated depreciation of $85,000,and current year depreciation expense of $17,000 is sold for $40,000 cash.The amount that should be reported as a source of cash under cash flows from investing activities is:

• A)$45,000.
• B)$5,000.
• C)$17,000.
• D)$28,000.
• E)$40,000.

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Definitions:

FASB Conceptual Framework

A theoretically based guide developed by the Financial Accounting Standards Board for creating financial accounting and reporting standards.

FASB Members

The individuals serving on the Financial Accounting Standards Board, responsible for establishing and improving standards of financial accounting and reporting in the U.S.

Securities And Exchange Commission

A government commission created by Congress to regulate the securities markets and protect investors in the United States, often abbreviated as SEC.

Accounting Principles

Fundamental concepts that guide the field of accounting, including principles like revenue recognition, matching, and the principle of conservatism.