Question

If a gain of $7,610 is realized in selling (for cash) office equipment having a book value of $55,485, find the total amount reported in the cash flows from investing activities section of the statement of cash flows.

Answer 1

Answer:

total amount reported in the cash flow from investing activities = book value + realized gain = $55,485 + $7,610 = $63,095

Explanation:

In order for this specific gain to be reported only once in the cash flow statement, it must first be deducted from the cash flow from operating activities as an adjustment to net income.