Hoboken's activities for the year ended December 31,2018 included the following: • Sold a held-for-trading investment for $12,000.The book value was $10,000.
• Sold an available-for-sale investment for $8,000.The book value was $9,000.
Using the direct method,how much would be presented as cash flow from operations for the "held for trading" investment?
A) Proceeds from sale of held for trading investment in the amount of 12,000.
B) Disposal of held for trading investment in the amount 10,000.
C) Gain on sale of held for trading investment in the amount 2,000.
D) Loss on sale of held for trading investment in the amount 2,000.

Question

Quizplus · Accepted Answer

According to the direct method, proceeds from the sale of the held-for-trading investment should be presented as cash flow from operations. The gain or loss on sale is not included in the operating section under this method.

Hoboken's Activities for the Year Ended December 31,2018 Included the Following