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

question 72

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 as a source of cash under cash flows from investing activities is:

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