Kline Industries prepares its cash flow statement using the direct method.Kline sold equipment with a book value of $7,500 at a gain of $1,300.The amount to be reported on the cash flow statement under "Cash received from sale of property,plant,and equipment" is:
A) $7,500
B) $6,200
C) $8,800
D) $1,300

Question

Quizplus · Accepted Answer

The amount received from the sale is the book value of the equipment ($7,500) plus the gain on sale ($1,300), totaling $8,800.

Kline Industries Prepares Its Cash Flow Statement Using the Direct