Question

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

Answer 1

$1750 was income. The cost basis at the time of sale was $2750.

Answer 2

12500-9750=2750 what it is worth
-4500 what is was sold for
= gain of 1750

Answer 3

4500- the amount sold for

Answer 4

4500