A machine with a cost of $130,000 and accumulated depreciation of $75,000 is sold for $50,000 cash on January 1 of the current year. The amount that should be reported in the operating activities section prepared using the indirect method is:

Select one or more:

a. $0.

b. $5,000.

c. $25,000.

d. $50,000.

e. $55,000.

A machine with a cost of $130,000 and accumulated depreciation of $75,000 is sold for $50,000 cash on January 1 of the current year. The amount that should be reported in the operating activities section prepared using the direct method is:

Select one or more:

a. $55,000.

b. $50,000.

c. $25,000.

d. $0.

e. $5,000.

For each of the following activities, identify whether it would be classified as an: operating activity; investing activity; financing activity; or significant noncash investing or financing activity.

Received cash dividends from investments in equity securities with insignificant influence.	Answer 1Choose...Significant noncash investing or financing activityOperating activityInvesting activityFinancing activity
Paid the principal balance on a note payable.	Answer 2Choose...Significant noncash investing or financing activityOperating activityInvesting activityFinancing activity
Sold equipment for cash.	Answer 3Choose...Significant noncash investing or financing activityOperating activityInvesting activityFinancing activity
Purchased land in exchange for a note payable.	Answer 4Choose...Significant noncash investing or financing activityOperating activityInvesting activityFinancing activity
Paid cash dividends.	Answer 5Choose...Significant noncash investing or financing activityOperating activityInvesting activityFinancing activity
Sold inventory for cash.	Answer 6Choose...Significant noncash investing or financing activityOperating activityInvesting activityFinancing activity
Sold land for cash.	Answer 7Choose...Significant noncash investing or financing activityOperating activityInvesting activityFinancing activity
Paid interest on a long-term note payable.	Answer 8Choose...Significant noncash investing or financing activityOperating activityInvesting activityFinancing activity
Issued stock for cash.	Answer 9Choose...Significant noncash investing or financing activityOperating activityInvesting activityFinancing activity
Paid cash for equipment.	Answer 10Choose...Significant noncash investing or financing activityOperating activityInvesting activityFinancing activity
Signed a note payable in exchange for cash.	Answer 11Choose...Significant noncash investing or financing activityOperating activityInvesting activityFinancing activity
Purchased a warehouse in exchange for shares of capital stock.	Answer 12Choose...Significant noncash investing or financing activityOperating activityInvesting activityFinancing activity
Collected accounts receivable from customers.	Answer 13Choose...Significant noncash investing or financing activityOperating activityInvesting activityFinancing activity
Paid cash for wages.	Answer 14Choose...Significant noncash investing or financing activityOperating activityInvesting activityFinancing activity
Received interest on an available-for-sale (AFS) investment in debt securities.	Answer 15Choose...Significant noncash investing or financing activityOperating activityInvesting activityFinancing activity