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

question 140

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 in the operating activities section reported under the direct method is:

• A) $50,000.
• B) Zero. This is a financing activity.
• C) $45,000.
• D) Zero. This is an investing activity.
• E) $5,000.

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Definitions:

Increases Danger

Enhances or escalates the level of risk or threat in a particular situation.

Implied Assumption Of Risk

A legal doctrine where an individual implicitly assumes the risk of harm in an activity, often limiting the liability of the defendant in personal injury cases.

Abolished

Formally put an end to a system, practice, or institution.

Modified

Altered or adjusted from the original form, condition, or arrangement to meet certain requirements or conditions.