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Phoenix Rising Corporation Sold an Unused Building for $177,000

Question 65

Multiple Choice

Phoenix Rising Corporation sold an unused building for $177,000. The building's book value on the date of sale was $172,000. How will this transaction appear in a statement of cash flows prepared using the indirect method?


A) A $172,000 increase in investing activities and $5,000 increase in operating activities
B) A $177,000 increase in investing activities and $5,000 increase in operating activities
C) A $177,000 increase in investing activities and $5,000 decrease in operating activities
D) A $172,000 increase in investing activities and $5,000 decrease in operating activities

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