A company sold equipment with a book value of $12,000 at a gain of $2500. How much can be reported in the investing activities section of the statement of cash flows as cash received upon the sale of the equipment?
A)The cash received upon the sale of the equipment is $9500.
B)The cash received upon the sale of the equipment is $2500
C)The cash received upon the sale of the equipment is $14,500.
D)The cash received upon the sale of the equipment is $2500.

Question

Quizplus · Accepted Answer

The cash received is the book value of the equipment ($12,000) plus the gain on sale ($2,500), totaling $14,500.

A Company Sold Equipment with a Book Value of $12,000