If a gain of $70 000 is incurred in selling equipment that has a book value of $250 000,the total amount reported in the cash flows from the investing activities section of the statement of cash flows is:
A) $70 000.
B) $220 000.
C) $320 000.
D) $270 000.

Question

Quizplus · Accepted Answer

The cash flow from investing activities should reflect the actual cash received from the sale of the equipment. The gain of $70,000 indicates that the equipment was sold for $320,000 ($250,000 book value + $70,000 gain).

If a Gain of $70 000 Is Incurred in Selling