A machine with a cost of $142,000 and accumulated depreciation of $97,000 is sol

Question

A machine with a cost of $142,000 and accumulated depreciation of $97,000 is sold for $56,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

A.zero. this is a operating activity

B.45000

C.11000

D.zero. this is a financing activity

E.56000

A machine with a cost of $142,000 and accumulated depreciation of $97,000 is sold for $56,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

Explanation / Answer

Amount of sles proceed should be reported under cash flow from investing activity.

Thus, 56000 should be reported as a source of cash under cash flows from investing activities

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