A Machine with a Cost of $130,000, Current Year Depreciation

question 212

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) $22,000.
• C) $57,000.
• D) $4,000.
• E) $21,000.

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Definitions:

AASB 141

The Australian Accounting Standards Board standard related to Agriculture, guiding how agricultural activities and assets should be accounted for.

IAS 41

IAS 41 is an International Accounting Standard that addresses the accounting for agricultural activity, including the management of the biological transformation and harvest of biological assets.

Investment Property

Real estate property that has been purchased with the intention of earning a return on the investment through rental income, the future resale of the property, or both.

AASB 140

The Australian Accounting Standards Board regulation relating to the accounting for investment property.