Question

Zenith Corporation sells some of its used store fixtures. The acquisition cost of the fixtures is $12,500, the accumulated depreciation on these fixtures is $9,750 at the time of sale. The fixtures are sold for $5,300. The value of this transaction in the Investing section of the statement of cash flows is:

a. $12,500
b. $5,300
c. $2,750
d. $2,550

Answer 1

The value of this transaction in the Investing section of the statement of cash flows is $2,750. Therefore, the correct option is C.

Step-by-step explanation:

The value of this transaction in the Investing section of the statement of cash flows is $2,750.

In the statement of cash flows, the sale of used store fixtures is classified as an investing activity. The value of the transaction is calculated by subtracting the accumulated depreciation from the acquisition cost of the fixtures:

$12,500 - $9,750 = $2,750

Therefore, the correct answer is option c. $2,750.