Anders Inc, reported that its bonds with a par value of $500,000 and a carrying value of $545,000 were retired for $525,000 resulting in a gain of $20,000. The amounts to be reported on the statement of cash flows include:
A)a $45,000 decrease in cash for financing activities
B)a $525,000 decrease in cash for investing activities and a $45,000 increase in financing activities.
C)a $20,000 decrease in cash from operating activities and a $525,000 decrease in cash for financing activities.
D)$20,000 increase in cash from operating activities and a $545,000 decrease in cash used for financing activities.

Question

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The Answer of Anders Inc, reported that its bonds with a par value of $500,000 and a carrying value of $545,000 were retired for $525,000 resulting in a gain of $20,000. The amounts to be reported on the statement of cash flows include:
A)a $45,000 decrease in cash for financing activities
B)a $525,000 decrease in cash for investing activities and a $45,000 increase in financing activities.
C)a $20,000 decrease in cash from operating activities and a $525,000 decrease in cash for financing activities.
D)$20,000 increase in cash from operating activities and a $545,000 decrease in cash used for financing activities.

Anders Inc, Reported That Its Bonds with a Par Value