Question

Niagara Resort Club sold plant assets at a $ 15 comma 000 loss. Where on the statement of cash flows should Niagara Resort Club report the sale of plant​ assets? How much should the business report for the​ sale?

Answer 1

The sale of the plant assets reported in the Income statement is at profit or loss whereas the asset sold reported in the Statement of Cash flows will show a positive balance of $15,000 from investing activities.

Step-by-step explanation:

The sale of Non current assets or fixed assets are always the amount that we received after the sale of the fixed asset. So the amount represented in the Statement of Cash Flows must be Total amount which is $15,000.