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:

Spearman's Rank

A non-parametric measure of rank correlation that assesses how well the relationship between two variables can be described by a monotonic function.

Correlation Coefficient

The correlation coefficient is a statistical measure that calculates the strength and direction of a linear relationship between two quantitative variables.

Paired Observations

Data collected in pairs such that each observation in one group is related or matched to an observation in another group.

Spearman Rank Correlation

An unparametric method for determining rank correlation that evaluates the extent to which two variables' relationship can be characterized by a monotonic function.