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:

Passionate

Exhibiting or characterized by intense feelings of enthusiasm or affection.

Investment Model

A theory in relationship psychology that examines commitment as a function of satisfaction, quality of alternatives, and investment size.

Alternatives

Other options or choices available in a situation from which a selection can be made.

Investments

The allocation of resources, usually financial, into assets or endeavors expected to yield returns or profits over time.