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:

Cognitive Development

The process by which a person's ability to think, understand, and interact with the world develops through childhood and adolescence.

Lev Vygotsky

A Soviet psychologist known for his work on cognitive development, particularly the social development theory which emphasizes the role of social interaction in the development of cognition.

Conservation

The protection and preservation of natural resources and the environment to prevent depletion and degradation.

Physical Properties

Characteristics of a substance that can be observed or measured without changing the substance's chemical composition, such as density, color, or melting point.