Larry Corp.'s policy is to report all cash flows arising from interest and dividends in the operating activities section.The activities for the year ended December 31,2018 included the following: • Sold a held-for-trading investment for $14,000.The book value was $15,000.
• Sold an available-for-sale investment for $10,000.The book value was $5,000.
How much would be presented as cash flow from investing activities?
A)Proceeds from disposal in the amount of 10,000.
B)Proceeds from disposal in the amount of 24,000.
C)Gain on sale in the amount 5,000.
D)Gain on sale in the amount 4,000.

Question

Quizplus · Accepted Answer

The proceeds from the sale of the held-for-trading investment and the available-for-sale investment should be presented as cash flow from investing activities. The gain on sale is not included in the cash flow statement.