A Building with a Book Value of $ 46,000 Is

question 109

Multiple Choice

A building with a book value of $ 46,000 is sold for $51,000 cash Using the indirect method, this transaction should be shown on the statement of cash flows as follows:

• A) an increase of $46,000 from investing activities
• B) an increase of $51,000 from investing activities and a deduction from net income of $5,000
• C) an increase of $51,000 from investing activities
• D) an increase of $46,000 from investing activities and an addition to net income of $5,000