Problem: Laurie Co. sold a machine for cash. The machine originally cost $20,000, and accumulated depreciation of $15,000 had been recorded up to the time of disposal. A gain on the disposal of $2,000 was reported. Therefore, cash inflow from the sale of the machine was: a. $7,000 b. $3,000 c. $4,000 d. $5,000

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Problem Details

Laurie Co. sold a machine for cash. The machine originally cost $20,000, and accumulated depreciation of $15,000 had been recorded up to the time of disposal. A gain on the disposal of $2,000 was reported. Therefore, cash inflow from the sale of the machine was:

a. $7,000

b. $3,000

c. $4,000

d. $5,000

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