Zenith Corporation sells some of its used store fixtures. The acquisition cost of the fixtures is $12,500, and the accumulated depreciation on these fixtures is $9,750 at the time of sale. The fixtures are sold for $5,300. The value of this transaction in the investing section of the statement of cash flows is
A) $12,500
B) $5,300
C) $2,750
D) $2,550

Question

Quizplus · Accepted Answer

The value of this transaction in the investing section of the statement of cash flows is the cash received from the sale, which is $5,300. The acquisition cost and accumulated depreciation are relevant for calculating the gain or loss on the sale but do not affect the cash flow statement's investing section directly.

Zenith Corporation Sells Some of Its Used Store Fixtures