Question

If a gain of $5,292 is realized in selling (for cash) office equipment having a book value of $50,960, find the total amount reported in the cash flows from investing activities section of the statement of cash flows. Select the correct answer. $56,252 $50,960 $5,292 $45,668

Answer 1

Answer:

$56,252

Explanation:

For the investing activities we should post the proceeds from the sale, not the gain or the book value of the equipment

if there is a gain, then it was sold above the book value by this amount

proceeds - book value = gain

book value: 50,960

gain: 5,292

proceeds - 50,960 = 5,292

proceeds =  50,960 + 5,292 = 56,252