If a gain of $81,000 is realized when selling (for cash) a building having a book value of $600,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
A)$519,000.
B)$681,000.
C)$600,000.
D)$81,000.

Question

Quizplus · Accepted Answer

The gain on the sale of the building is reported in the cash flows from investing activities section because it is a non-operating activity. To calculate the total amount reported in this section, you need to subtract the book value of the building from the cash received from the sale, which is $681,000 ($600,000 + $81,000). Therefore, the correct answer is B, $681,000.

If a Gain of $81,000 Is Realized When Selling (For