Final answer:
The proceeds from selling a fully depreciated vehicle are recorded in the a. investing activities section of a company's cash flow statement, as it pertains to long-term investment assets.
Step-by-step explanation:
If a company sells a fully depreciated vehicle, the cash proceeds from the sale will be included in the cash flow statement under investing activities. Depreciation is an allocation of the cost of a tangible asset over its useful life, and once fully depreciated, the asset's book value is essentially zero. However, if the asset is then sold, the cash received from the sale is considered a cash inflow from investing activities. Selling fixed assets, such as vehicles, equipment, or buildings, regardless of their depreciation status, falls into this category because it is related to the investments a company makes in its long-term assets.