A machine with a cost of $148,000 and accumulated depreciation of $103,000 is sold for $59,000 cash. The amount that should be r

Question

3 years ago

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A machine with a cost of $148,000 and accumulated depreciation of $103,000 is sold for $59,000 cash. The amount that should be r

eported as a source of cash under cash flows from investing activities is: Multiple Choicea. Zero.b. This is a financing activity.c. $59,000.d. $14,000.e. This is an operating activity.f. $45,000.

Business

1 answer:

Lunna [17] · Answer 1 · 2022-08-29T16:52:32+03:00

Answer:

c. $59,000

Explanation:

The cash flow statements shows the effect of the company's activities on cash. These activities are classed into operating, investing and financing activities.

When an asset is sold, the amount received from the sale is an inflow of cash to the company. This inflow is recognized in the investing segment of the cas flow statement.

Hence, the amount that should be reported as a source of cash under cash flows from investing activities is $59,000.