Zed Limited acquired plant and machinery for use in its business at a cost of £80,000. The plant and machinery was estimated to have a residual value of £20,000 and an estimated useful life of 4 years. The plant and machinery has been depreciated on the straight line basis. 2 years and 6 months after the date of acquisition the plant and machinery was sold and a profit of £3,500 was made on the sale of this asset. What is the cash inflow from the sale of the plant and machinery that will be recorded under cash flows from investing activities?
A) £26,500
B) £33,500
C) £39,000
D) £46,000

Question

Quizplus · Accepted Answer

The Answer of Zed Limited acquired plant and machinery for use in its business at a cost of £80,000. The plant and machinery was estimated to have a residual value of £20,000 and an estimated useful life of 4 years. The plant and machinery has been depreciated on the straight line basis. 2 years and 6 months after the date of acquisition the plant and machinery was sold and a profit of £3,500 was made on the sale of this asset. What is the cash inflow from the sale of the plant and machinery that will be recorded under cash flows from investing activities?
A) £26,500
B) £33,500
C) £39,000
D) £46,000

Zed Limited Acquired Plant and Machinery for Use in Its