If Reed Company realizes a loss of $9,000 on a cash sale of office equipment having a book value of $90,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

Question

Quizplus · Accepted Answer

The cash received from the sale is the book value minus the loss, which is $90,000 - $9,000 = $81,000. This is the amount reported in the cash flows from investing activities.

If Reed Company Realizes a Loss of $9,000 on a Cash