A building with a cost of $683,000,and accumulated depreciation of $397,500,was sold at a gain of $82,000.This transaction would be reported on a statement of cash flows using the indirect format as a(n):

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The correct answer is A because the cash inflow from the sale of the building is calculated by adding the gain to the book value of the asset. The book value is the cost ($683,000) minus accumulated depreciation ($397,500), which equals $285,500. Adding the gain of $82,000 results in a total inflow of $367,500. This is reported as an inflow from investing activities. The gain is also deducted from net income in the operating activities section when using the indirect method.

A Building with a Cost of $683,000,and Accumulated Depreciation of $397,500,was