Discount Sales sells some used store fixtures. The acquisition cost of the fixtures is $12,500, the accumulated depreciation on these fixtures is $9,750 at the time of sale. The fixtures are sold for $4,500. The value of this transaction in the Investing section of the statement of cash flows is: $12,500
$4,500
$2,750
$1,750
$1750 was income. The cost basis at the time of sale was $2750.
12500-9750=2750 what it is worth
-4500 what is was sold for
= gain of 1750
4500- the amount sold for
4500
To determine the value of this transaction in the Investing section of the statement of cash flows, we need to consider the change in the value of the fixtures.
The acquisition cost of the fixtures is $12,500, and the accumulated depreciation at the time of sale is $9,750. This means that the net book value of the fixtures (original cost - accumulated depreciation) is $12,500 - $9,750 = $2,750.
The fixtures are then sold for $4,500. To calculate the value of the transaction in the Investing section, we need to consider the gain or loss on the sale. The gain or loss is calculated by subtracting the net book value of the fixtures from the sale price. In this case, the gain would be $4,500 - $2,750 = $1,750.
Therefore, the value of this transaction in the Investing section of the statement of cash flows is $1,750.