What Is the Amount of the Amortization of the Unrealized

question 18

Multiple Choice

What is the amount of the amortization of the unrealized gain for 2016 arising from the transfer of John's assets?

• A) Nil
• B) $18,000
• C) $42,000
• D)$60,000

---

Definitions:

Operating Activities

Activities that are directly related to the day-to-day operations of a business, including revenue generation and expense incurrence.

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in non-cash accounts to calculate operating cash flow.

Net Income

A company's overall income after deducting all expenses and taxation from gross revenue.

Accumulated Depreciation

The total depreciation amount that has been charged to expense a fixed asset over its useful life to reflect wear and tear, aging, or obsolescence.