Equipment with a cost of $32,000 and accumulated depreciation of $7,000 was sold for $45,000. What was the amount of net cash provided by (used for)investing activities?

Question

Quizplus · Accepted Answer

The amount of net cash provided by (used for) investing activities is calculated by taking the difference between the cash received from the sale of equipment and the equipment's book value (cost - accumulated depreciation).

Cash received from the sale of equipment = $45,000
Book value of equipment = $32,000 - $7,000 = $25,000

Therefore, net cash provided by (used for) investing activities = $45,000 - $25,000 = $20,000.

Thus, the correct answer is (D) $(20,000).

Equipment with a Cost of $32,000 and Accumulated Depreciation of $7,000