Hoboken's activities for the year ended December 31,2018 included the following: • Sold a held-for-trading investment for $12,000.The book value was $10,000.
• Sold an available-for-sale investment for $8,000.The book value was $9,000.
How much would be presented as cash flow from operations for the "held for trading" investment?
A)Proceeds from sale of held for trading investment in the amount of 12,000.
B)Disposal of held for trading investment in the amount 10,000.
C)Gain on sale of held for trading investment in the amount 2,000.
D)Loss on sale of held for trading investment in the amount 2,000.

Question

Quizplus · Accepted Answer

The gain on sale of the held-for-trading investment, which is the difference between the sale proceeds ($12,000) and the book value ($10,000), amounts to $2,000. This gain is recognized in the income statement and affects cash flow from operations.

Hoboken's Activities for the Year Ended December 31,2018 Included the Following