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:

Daily Interest

Interest calculation method where the interest is accrued daily.

Savings Account

A bank account where money is kept so that it can earn interest over time, typically used for holding funds that are not needed for daily expenses.

Annual Simple Interest

Interest calculated once a year on the principal sum, without compounding.

Earned

Received as a result of work or effort.