If a loss of $12,000 is incurred in selling (for cash) equipment having a book value of $60,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is:
A) $12,000.
B) $60,000.
C) $48,000.
D) $78,000.

Question

Quizplus · Accepted Answer

The cash received from selling the equipment is not provided in the question. However, we know that the loss from the sale was $12,000, which means that the selling price must have been $48,000 ($60,000 - $12,000). Therefore, the total amount reported in the cash flows from investing activities section would be the $48,000 cash received from the sale.

If a Loss of $12,000 Is Incurred in Selling (For