A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash.The amount that should be reported in the operating activities section reported under the direct method is:

A) $50,000.
B) $5,000.
C) $45,000.
D) $0.
E) $35,000.

Direct Method

A cash flow statement presentation that lists operating cash receipts and payments, providing a clear view of cash sources and uses.

Operating Activities

Activities that relate to the core operations of a company, including the production, distribution, and sale of goods and services.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired.