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Accounting Assignment | Custom Assignment Help

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September 13th, 2019

Busch Company sold a machine for $10,000 cash. The machine originally cost $65,000 and the company had recognized $53,000 in depreciation over the life of the machine. What is the effect of this sale on Busch Company’s income statement and its statement of cash flows?

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a.$2,000 loss on the income statement; $10,000 cash outflow from operating activities

b.$55,000 loss on the income statement; $10,000 cash inflow from operating activities

c.$2,000 loss on the income statement; $10,000 cash inflow from investing activities

d.$55,000 loss on the income statement; $10,000 cash inflow from investing activities

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