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

question 127

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

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Definitions:

Kohlberg

Refers to Lawrence Kohlberg, a psychologist best known for his theory of moral development, which proposes that ethical reasoning progresses through distinct stages.

Social-System Morality

Ethical principles and rules for behavior that are considered acceptable by a group or society.

Interpersonal Norms

Established guidelines or expectations for behaviors in social interactions among individuals within a group or society.

Moral Reasoning

The process by which individuals think about and determine right from wrong.