If Martinelli Corporation realizes a gain of $81,000 on a cash sale of equipment having a book value of $600,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
A)$519,000.
B)$681,000.
C)$600,000.
D)$81,000.

Question

Quizplus · Accepted Answer

The cash flows from investing activities should report the total cash received from the sale, which is the book value plus the gain: $600,000 + $81,000 = $681,000.

If Martinelli Corporation Realizes a Gain of $81,000 on a Cash