Hager Company sold some of its plant assets during 2011.The original cost of the plant assets was $750,000 and the accumulated depreciation at date of sale was $700,000.The proceeds from the sale of the plant assets were $105,000.The information concerning the sale of the plant assets should be shown on Hager's statement of cash flows (indirect method) for the year ended December 31, 2011, as a(n)

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The sale of the plant assets resulted in a loss of $50,000 ($750,000 - $700,000 - $105,000) which is subtracted from net income in the operating activities section of the statement of cash flows under the indirect method. The proceeds from the sale of the plant assets of $105,000 are reported as a cash inflow in the investing activities section. Therefore, the correct answer is C - subtraction from net income of $55,000 (loss of $50,000 + depreciation of $5,000) and a $105,000 increase in cash flows from investing activities.

Hager Company Sold Some of Its Plant Assets During 2011