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

question 137

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

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; how spread out numbers are around the mean.

Median

The middle value of a data set, which divides the set into two equal halves when arranged in ascending or descending order.

Pth Percentile

A value on a rank-ordered dataset below which a certain percentage (P) of observations fall.

Observations

Data collected during an experiment or research, representing the values or attributes of variables of interest.