A Building with a Book Value of $54,000 Is Sold

question 40

Multiple Choice

A building with a book value of $54,000 is sold for $63,000 cash Using the indirect method, this transaction should be shown on the statement of cash flows as follows:

• A) an increase of $54,000 from investing activities
• B) an increase of $63,000 from investing activities and a deduction from net income of $9,000
• C) an increase of $9,000 from investing activities
• D) an increase of $54,000 from investing activities and an addition to net income of $9,000

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Definitions:

Schwann Cells

A type of glial cell that wraps around nerve fibers in the peripheral nervous system, forming the myelin sheath that aids in the fast conduction of electrical signals.

Afferent Neurons

Nerve cells that carry sensory information from the body's organs and tissues toward the central nervous system.

Reticular Formation

A network of nerve pathways in the brainstem involved in consciousness, the sleep-wake cycle, and filtering sensory information before it reaches higher brain centers.

Hippocampus

A critical region of the brain involved in the formation of new memories and is associated with learning and emotions.