Question

A machine with a cost of $164,000, accumulated depreciation of $102,000, and current year depreciation expense of $25,500 is sold for $53,600 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

Answer 1

Answer:

$53,600

Explanation:

The computation of the cash flow from investing activities is shown below:

Cash flow from investing activities

Sale value of machinery $53,600

Net cash flow from investing activities $53,600

The current year depreciation expense is to be reported under operating activities and as we know that the investing activities record those activities which are held for purchased and sale of long term assets so the sale value fo machinery is only reported