Question

A machine with a cost of $150,000 and accumulated depreciation of $95,000 is sold for $70,000 cash. The amount that should be reported in the operating activities section reported under the direct method is:

Answer 1

$0

Step-by-step explanation:

The operating activities section of the cash flow statement under the direct method records the cash receipts with regard to sale of the products and the cash payments with regard to expenses

Therefore in the given case, it would be $0 as there is no transaction occured that should be reported in the operating activities section of the cash flow statement

The same is to be considered