Question

If a gain of $8,096 is realized in selling (for cash) office equipment having a book value of $56,296, the total amount reported in the Cash flows from investing activities section of the statement of cash flows is:

Answer 1

Answer:

$64,392

Explanation:

Given that

Gain realized in selling for office equipment = $8,096

Book value = $56,296

The computation of cash flow from investing activity is shown below:-

= Book value + Gain realized in selling for office equipment

= $56,296 + $8,096

= $64,392

Therefore, for calculating the cash flow from investing activity we simply add book value with gain.