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A Machine with a Cost of $130,000 and Accumulated Depreciation

Question 34

Multiple Choice

A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported in the operating activities section reported under the direct method is:


A) $50,000.
B) Zero. This is a financing activity.
C) $45,000.
D) Zero. This is an investing activity.
E) $5,000.

Correct Answer:

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