If a company sells an asset for $10,000 that had originally cost $30,000 and had $24,000 of accumulated depreciation, what would be reported on the cash flow statement?

Question

Quizplus · Accepted Answer

The sale of the asset would result in a gain of $4,000 ($10,000 selling price - $6,000 book value), which would be deducted from cash flow from operations on the cash flow statement. The $10,000 inflow from the sale would be reported as a cash inflow in investing activities.

If a Company Sells an Asset for $10,000 That Had