A Building Costing $550,000 with Accumulated Depreciation of $225,000 Was

question 111

Multiple Choice

A building costing $550,000 with accumulated depreciation of $225,000 was sold for $275,000 cash.Which of the following statements is correct with respect to preparing the cash flow statement if the indirect method is being used?

• A)$50,000 will be added to net income to determine cash flow from operating activities and $325,000 will be reported as a cash outflow in the investing activities section.
• B)$50,000 will be deducted from net income to determine cash flow from operating activities and $275,000 will be reported as a cash inflow in the investing activities section.
• C)$50,000 will be added to net income to determine cash flow from operating activities and $275,000 will be reported as a cash inflow in the investing activities section.
• D)$275,000 will be added to net income to determine cash flow from operating activities and $325,000 will be reported as a cash outflow in the investing activities section.

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Definitions:

Mortality Rate

A measure of the number of deaths in a particular population, scaled to the size of that population, per unit time.

Fatigue Duty

Labor, often of a menial or exhausting nature, assigned to soldiers in addition to their regular duties.

Battlefield Performance

The effectiveness, strategy, and outcomes of military units engaged in combat during a conflict.

Fifty-Fourth Massachusetts

An African American regiment during the American Civil War, celebrated for its bravery and as a symbol of black soldiers' contributions to the Union victory.