Camera Co. sold equipment with a cost of $22,000 and accumulated depreciation of $6,000 for an amount that resulted in a gain of $5,000. What amount should Innovativions report on the statement of cash flows as 'proceeds from sale of plant assets'?
D. Some other amount
Cash Flow from Investing Activities:
In the second section of the cash flow statement, the cash generated by investing activities is presented. This includes all cash spent on the acquisition of long-term assets as well as all proceeds from the sale of long-term assets.
Answer and Explanation:
The proceeds were:
|Gain on sale||5,000|
|Proceeds from the sale of plant assets||$21,000|
The correct option is C.
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from Accounting 301: Applied Managerial AccountingChapter 15 / Lesson 3