Chapter 14, Problem 6QC

The Plant Assets account and Accumulated Depreciation-Plant Assets account of Star Media show the following:

Plant Assets
Beg.	100,000
Acquisitions	428,000	52,500	Disposals
End.	475,500
Accumulated Depreciation—Plant Assets
		20,000	12/31/2015
Disposals	10,500	34,000	Depr. Exp.
		43,500	12/31/2016

Star Media sold plant assets at an $11,000 loss. Where on the statement of cash flows should Star Media report the sale of plant assets? How much should the business report for the sale?

1. a. Financing cash flows---cash receipt of $42,000
2. b. Investing cash flows -cash receipt of $53,000
3. c. Investing cash flows-cash receipt of $31,000
4. d. Investing cash flows ---cash receipt of $42,000