Foxworth Company sold plant assets that had accumulated depreciation of $20,000.These assets cost Foxworth $70,000 when purchased 4 years ago.The sale of the assets resulted in a gain for Foxworth of $2,000.The amount of cash reported for this transaction on Foxworth's statement of cash flows is a:

Question

Quizplus · Accepted Answer

The cash inflow from the sale of the plant assets can be calculated as follows: 
Sale price = cost - accumulated depreciation + gain 
Sale price = $70,000 - $20,000 + $2,000 
Sale price = $52,000 
Therefore, the amount of cash reported for this transaction on Foxworth's statement of cash flows is a $52,000 inflow.

Foxworth Company Sold Plant Assets That Had Accumulated Depreciation of $20,000.These