In a statement of cash flows,if equipment is sold at a gain,the amount shown as a cash inflow from investing activities equals the carrying amount of the equipment
A) with no addition or subtraction.
B) plus the gain and less the amount of tax attributable to the gain.
C) plus the gain only.
D) plus both the gain and the amount of tax attributable to the gain.

Question

Quizplus · Accepted Answer

When equipment is sold at a gain, the amount shown as a cash inflow from investing activities is the proceeds from the sale of equipment (which equals the carrying amount of the equipment plus the gain). There is no need to account for tax attributable to the gain in this case. Therefore, the answer is C.

In a Statement of Cash Flows,if Equipment Is Sold at a Gain,the