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:

Aggravated Identity Theft

A crime involving the unauthorized use of another individual’s personal information to commit fraud, especially under circumstances that exacerbate the crime's severity.

EU Data Protection Directive

A decree issued by the European Union (EU) that prevents European companies from sharing ESI with countries that do not provide the same level of protection for the ESI as the EU.

Consideration

The value (such as cash, goods, or services) exchanged between parties in a contract, making the agreement legally binding and enforceable.

Bargained-For-Exchange

A fundamental principle in contract law requiring that each party to a contract must exchange something of value for the agreement to be binding.