Final answer:
The total amount related to the machine that should be reported in the operating section of the statement of cash flows under the indirect method is a loss of $6,000, which is the difference between the net book value of the machine and the sale proceeds.
Step-by-step explanation:
To determine the total amount related to the machine that should be reported in the operating section of the statement of cash flows under the indirect method, we need to calculate the gain or loss on the sale of the machine. We do this by subtracting the machine's net book value from the sale proceeds.
The net book value is calculated as the original cost of the machine ($140,000) minus the accumulated depreciation ($90,000), which equals $50,000. The sale proceeds were $44,000. Therefore, the loss on the sale is $6,000 ($50,000 minus $44,000).
When using the indirect method for preparing the statement of cash flows, this loss is added back to net income because it is a non-cash expense that reduced net income on the income statement. It's important to note that the depreciation expense for the current year is not included in this calculation as it is already accounted for in the net income, which the indirect method starts with.
Therefore, the total amount related to the machine that should be reported in the operating section of the statement of cash flows is the loss on the sale of $6,000.