Question

A machine with a cost of 142,000, accumulated depreciation of 91,000, and current year depreciation expense of 20,000 is sold for 44,800 cash. What is the amount that should be reported as a source of cash under cash flows from investing activities?

1) 142,000
2) 91,000
3) 20,000
4) 44,800

Answer 1

The amount that should be reported as a source of cash under cash flows from investing activities from the sale of the machine is $44,800, which is the cash received from the sale.

Step-by-step explanation:

The question asks what amount should be reported as a source of cash under cash flows from investing activities from the sale of a machine. The cash received from the sale is the amount that impacts cash flow. Therefore, the amount recorded in the investing activities section of the cash flow statement is the cash received from the sale of the machine, which is $44,800. The machine's original cost, accumulated depreciation, and depreciation expense do not directly impact the cash received from the sale and thus are not relevant for this part of the cash flow statement.