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.

Question

Quizplus · Accepted Answer

The sale of a machine is considered an investing activity, and the cash received from the sale ($50,000) is the amount reported under cash flows from investing activities.

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