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A machine with a cost of $174,000 and accumulated depreciation of $107,000 is sold for $57,600...

A machine with a cost of $174,000 and accumulated depreciation of $107,000 is sold for $57,600 cash. The total amount related to this machine that should be reported in the operating section of the statement of cash flows under the indirect method is: Multiple Choice $5,760. $14,400. $28,000. $9,400. $85,600.

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Answer #1

Cost of machine = $174,000

Accumulated depreciation = $107,000

Book valur of machine = Cost of machine - Accumulated depreciation

= 174,000 - 107,000

= $67,000

Sale price of machine = $57,600

Loss on sale of machine = Book valur of machine - Sale price of machine

= 67,000 - 57,600

= $9,400

Loss on sale of machine of $9,400 will be shown under operating activities section of the statement of cash flow.

Fourth option is the correct option.

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