Chattel Company sold equipment that originally cost $46,000 and accumulated depreciation in the amount of $38,200 for $8,000 cash.
- What amount is reported in the Cash Flows from Investing Activities section of the Statement of Cash Flows for the sale of this equipment?

Question

Quizplus · Accepted Answer

The amount reported in the Cash Flows from Investing Activities section for the sale of equipment is the cash received from the sale, which is $8,000. The original cost and accumulated depreciation of the equipment do not affect the cash flow amount reported for the sale.

Chattel Company Sold Equipment That Originally Cost $46,000 and Accumulated