Rouse Company owned an asset that had cost $32,000. The company sold the asset on January 1, 2014 for $8,000. Accumulated depreciation on the day of sale amounted to $26,000. Based on this information, the sale would result in:
A) an $8,000 increase in total assets.
B) a $6,000 cash inflow in the financing activities section of the cash flow statement.
C) a $2,000 decrease in total assets.
D) an $8,000 cash inflow in the investing activities section of the cash flow statement.

Question

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The Answer of Rouse Company owned an asset that had cost $32,000. The company sold the asset on January 1, 2014 for $8,000. Accumulated depreciation on the day of sale amounted to $26,000. Based on this information, the sale would result in:
A) an $8,000 increase in total assets.
B) a $6,000 cash inflow in the financing activities section of the cash flow statement.
C) a $2,000 decrease in total assets.
D) an $8,000 cash inflow in the investing activities section of the cash flow statement.

Rouse Company Owned an Asset That Had Cost $32,000