If a loss of $9,200 is incurred in selling (for cash) a patent having a book value of $80,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
A) $70,800.
B) $89,200.
C) $9,200.
D) $80,000.

Question

Quizplus · Accepted Answer

The total amount reported in the cash flows from investing activities section would be the cash received from the sale of the patent. Since a loss of $9,200 is incurred on a patent with a book value of $80,000, the cash received is $80,000 - $9,200 = $70,800.

If a Loss of $9,200 Is Incurred in Selling (For