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.
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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