Equipment with a cost of $34,000 and accumulated depreciation of $7100 was sold for $48,000. What was the amount of net cash provided by (used for)investing activities?

Question

Quizplus · Accepted Answer

The net cash provided by (used for) investing activities is calculated as the difference between the proceeds from the sale of the equipment and the book value of the equipment. The book value of the equipment is the cost of the equipment minus the accumulated depreciation. Therefore, the net cash provided by (used for) investing activities is $48,000 - ($34,000 - $7,100) = $20,000.

Equipment with a Cost of $34,000 and Accumulated Depreciation of $7100