A Building with a Cost of $163,000 and Accumulated Depreciation

question 23

True/False

A building with a cost of $163,000 and accumulated depreciation of $32,000 was sold for a $11,000 gain.When using the indirect method, the cash generated from this investing activity was $131,000.

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Definitions:

Commercial Reasonableness

A standard used to evaluate the appropriateness of actions taken in a business context, ensuring they align with typical business practices and norms.

Business Judgment

refers to the decision-making process by corporate directors and officers that is presumed to be in the best interest of the company, protecting them from liability if the decisions are made in good faith and with reasonable care.

Counteroffer

A proposal made in response to an offer, signaling rejection of the initial offer and suggesting a new agreement for negotiation.

Acceptance

The agreement to the terms of an offer, contract, or proposal, thereby creating a binding legal obligation.