If a loss of $20,000 is incurred in selling (for cash) oﬃce equipment that cost $90,000 and had accumulated depreciation of $22,500, the total amount reported in the investing activities section of the statement of cash ﬂows is
A) $70,000.
B) $67,500.
C) $47,500.
D) $87,500.

Question

Quizplus · Accepted Answer

The cash received from the sale is calculated as the cost of the equipment ($90,000) minus accumulated depreciation ($22,500) minus the loss ($20,000), which equals $47,500. This amount is reported in the investing activities section.

If a Loss of $20,000 Is Incurred in Selling (For