Chattel Company sold for $7,000 equipment that originally cost $40,000 and had depreciation in the amount of $34,000 taken.What amount is reported in the Cash Flows from Investing Activities section of the Statement of Cash Flows?

Question

Quizplus · Accepted Answer

The amount reported in the Cash Flows from Investing Activities section of the Statement of Cash Flows is the selling price of the equipment, which is $7,000. The depreciation taken on the equipment is not included in this section, as it is already reflected in the Income Statement through the reduction of the equipment's book value.

Chattel Company Sold for $7,000 Equipment That Originally Cost $40,000