Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

Exercise 12

On December 25, 2015, Mr. Jones gives Charity A 1,000 shares of stock that he had bought for $9,000. No restrictions were placed on this donation. Because of a board policy, the shares were sold on December 26, 2015, for their fair value of $28,000. How does the charity report these events on a statement of cash flows
a. As a $28,000 cash inflow from an investing activity.
b. As a $9,000 cash inflow from an operating activity and a $19,000 cash inflow from an investing activity.
c. As a $28,000 cash inflow from an operating activity.
d. As a $9,000 cash inflow from a financing activity and a $19,000 cash inflow from an investing activity.