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Question: 5 A building with a book value of $49,315 is sold for $53,135 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as an increase of: a. $53,135 from investing activities and a deduction from net income of $3,820 b. $53,135 from investing activities c. $49,315 from investing activities d. $49,315 from investing activities and an addition to a net income of $3,820

Question: 5 A building with a book value of $49,315 is sold for $53,135 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as an increase of: a. $53,135 from investing activities and a deduction from net income of $3,820 b. $53,135 from investing activities c. $49,315 from investing activities d. $49,315 from investing activities and an addition to a net income of $3,820

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 27BE
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Question: 5 A building with a book value of $49,315 is sold for $53,135 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as an increase of: a. $53,135 from investing activities and a deduction from net income of $3,820 b. $53,135 from investing activities c. $49,315 from investing activities d. $49,315 from investing activities and an addition to a net income of $3,820
Transcribed Image Text:Question: 5 A building with a book value of $49,315 is sold for $53,135 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as an increase of: a. $53,135 from investing activities and a deduction from net income of $3,820 b. $53,135 from investing activities c. $49,315 from investing activities d. $49,315 from investing activities and an addition to a net income of $3,820
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