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A building with a book value of $38,124 is sold for $60,781 cash. Using the indirect method, choose how this transaction shou

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Answer #1

Solution:

Sale value will increase investing cash flow = $60,781

Gain on sale will be deducted from net income = 60781 - 38124 = $22,657

Hence third option is correct. That is "an increase of $60,781 from investing activities and a deduction from net income of $22,657".

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