Shively Mfg. Co. sold for $18,000 equipment that cost $40,000 and had a book value of $30,000. Shively would report:

Question

Quizplus · Accepted Answer

The sale of equipment is an investing activity and would result in an investing cash inflow. The amount received for the sale of the equipment, $18,000, would be reported in the statement of cash flows as an investing cash inflow. The cost and book value amounts are not relevant to the determination of the cash inflow from the sale of the equipment.