Hoboken's Activities for the Year Ended December 31, 2021 Included

question 12

Multiple Choice

Hoboken's activities for the year ended December 31, 2021 included the following: • Sold an investment at FVPL for $12,000. The investment was held for trading purposes. The book value was $10,000.
• Sold an Investment at FVOCI for $8,000. The original cost of the investment was $9,000.
Using the direct method, how much would be presented as cash flow from operations for the investment at FVPL investment?

• A)Proceeds from sale of am investment at FVPL in the amount of 12,000.
• B)Disposal of an investment at FVPL investment in the amount 10,000.
• C)Gain on sale of an investment at FVPL investment in the amount 2,000.
• D)Loss on sale of an investment at FVPL investment in the amount 2,000.

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Definitions:

Cilia

Microscopic, hair-like structures on the surface of cells that move in a waving motion to transport substances across the cell surface.

Epiglottis

A flap of tissue at the root of the tongue that is depressed during swallowing to cover the opening of the windpipe and prevent food from entering the lungs.

Larynx

The voice box located in the throat, responsible for producing vocal sounds, protecting the trachea during swallowing, and regulating airflow to the lungs.

Chronic Bronchitis

Inflammation of the bronchi in the lungs that is usually caused by smoking or exposure to environmental contaminants.