Question

question content area 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 activities section of the statement of cash flows is

Answer 1

The value of the transaction in the investing activities section of the statement of cash flows is $2,550.

Step-by-step explanation:

The value of the transaction in the investing activities section of the statement of cash flows is the difference between the sales price of the fixtures and their book value.

Book value is calculated by subtracting the accumulated depreciation from the acquisition cost of the fixtures.

In this case, the book value of the fixtures is $2,750 ($12,500 - $9,750), and they are sold for $5,300.

Therefore, the value of this transaction in the investing activities section of the statement of cash flows is $2,550 ($5,300 - $2,750).