Zenith Corporation Sells Some of Its Used Store Fixtures

question 57

Multiple Choice

Zenith Corporation sells some of its used store fixtures. The acquisition cost of the fixtures is $12,500, the accumulated depreciation on these fixtures is $9,750 at the time of sale. The fixtures are sold for $5,300. The value of this transaction in the Investing section of the statement of cash flows is:

• A) $12,500
• B) $5,300
• C) $2,750
• D) $2,550

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Definitions:

Transfer Price

The price charged for goods and services sold between departments or subsidiaries of the same company.

Detector Division

A specialized unit within a company focused on detecting and analyzing specific types of information or signals.

Outside Customers

Individuals or entities that purchase a company's goods or services but are not part of the company itself.

Transfer Price

The fee at which services and items are traded between different sections within the same firm.