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:__________.

Answer 1

The amount that should be reported as a source of cash under cash flows from investing activities is the cash received from the sale of the machine, which in this case is $56,000.

Step-by-step explanation:

To determine the amount reported as a source of cash under cash flows from investing activities when a machine is sold, we need to consider the cash received from the sale. Here, the machine was sold for $56,000 cash. The amount that should be reported under cash flows from investing activities is the cash received from the sale, which is $56,000. This is irrespective of the machine's original cost or its accumulated depreciation, as these figures are relevant for calculating any gain or loss on the sale but do not directly impact the cash flow statement.

Answer 2

A machine would cost $142,000 and the depreciation of $98,000