Select Transactions of Irene Accounting Inc

question 1

Essay

Select transactions of Irene Accounting Inc. (IAI)are listed below. IAI uses the indirect method to determine cash flows from operating activities.
1. IAI sells an investment at amortized cost for $28,000. The investment's book value is $20,000.
2. IAI's income tax expense totaled $30,000. Its income tax payable account increased $5,000, while its deferred income tax liability account decreased $18,000.
3. IAI declares a cash dividend of $3,000. The dividends payable account increases $1,000.
4. At year-end IAI increases its allowance for bad debts by $15,000.
Required:
Discuss how the activities listed above would be reported in the statement of cash flows. For items with multiple reporting options, identify all available options. For items not reported on the statement of cash flows, indicate the disclosure requirements, if any.

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Definitions:

Task-specific

relates to skills, abilities, or knowledge that is directly relevant to the performance of a particular job or task.

Appraisal

The act of assessing something or someone, often referring to the evaluation of an employee's performance in a job.

Vicarious Reinforcement

The learning process where individuals modify their behavior based on observing the consequences of actions performed by others, reinforcing or discouraging certain behaviors without direct experience.

Discrepancy

A difference or inconsistency between two or more facts, figures, perspectives, or statements.