A machine with a cost of $130,000, accumulated depreciation of $85,000, and current year depreciation expense of $17,000 is sold for $40,000 cash

Management Dec 16, 2020

A machine with a cost of $130,000, accumulated depreciation of $85,000, and current year depreciation expense of $17,000 is sold for $40,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:
O 805,000.
0 85,000
0 557,000.
0 $08,000.
0 $40,008.

Expert Solution

Sale proceeds from the sale of machine amounted to $40,000 for cash is reported as a source of cash under cash flow from investing activities.

Therefore, Option 5th "$40,000" is the correct answer.

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