Rodgers Chemicals sold a piece of equipment for cash and recognized a gain of $5,000.The original cost was $34,000 and the accumulated depreciation on the equipment just prior to the sale totaled $19,000.What amount will Rodgers Chemicals report in the investing activities section of its statement of cash flows?

Question

Quizplus · Accepted Answer

The amount reported in the investing activities section of the statement of cash flows is the cash received from the sale of the equipment, which would be the cash proceeds from the sale ($5,000) plus the book value of the asset at the time of sale ($19,000) for a total of $24,000.

Rodgers Chemicals Sold a Piece of Equipment for Cash and Recognized