Chapter 16, Problem 6QC

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

Learning Objective 2

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. Financing cash flows—cash receipt of $42,000
2. Investing cash flows—cash receipt of $53,000
3. Investing cash flows—cash receipt of $31,000
4. Investing cash flows—cash receipt of $42,000