A building with a cost of $153,000 and accumulated depreciation of $42,000 was sold for an $11,000 gain. When using the indirect method, the cash generated from this investing activity is $121,000.

Question

Quizplus · Accepted Answer

The cash generated from this investing activity is $122,000, calculated by adding the gain of $11,000 to the carrying amount of the building ($153,000 - $42,000 = $111,000), resulting in $111,000 + $11,000 = $122,000.

A Building with a Cost of $153,000 and Accumulated Depreciation