Question

If a loss of $108,000 is realized when selling (for cash) a building having a book value of $800,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

Answer 1

$692,000

Step-by-step explanation:

Given that the company recognized a loss of $108,000 from selling a building whose book value is $800,000 for cash,

Amount received from the sale of the building is

= $800,000 - $108,000

= $692,000

The company sold the assets for $692,000 in cash.

The total amount reported in the cash flows from investing activities section of the statement of cash flows is equivalent to the cash received from the disposal of the asset $692,000.