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:

Equitably Administered

Managed or governed in a fair and impartial manner, ensuring justice and equality in treatment and services.

Equity Theory

A theory in social psychology that explains how individuals perceive fairness in the distribution of resources and rewards in relation to others.

Managerial Implications

The impacts or consequences that a decision, strategy, or finding has on the management or operational practices of an organization.

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Compensation given to employees in exchange for their labor or services, often in the form of wages or salaries.