In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is
A) added to net income.
B) deducted from net income.
C) ignored because it does not affect cash.
D) not reported on a statement of cash flows.
B
You might also like to view...
What are some of the forces that are driving companies to practice corporate social responsibility?
What will be an ideal response?
Unless the partnership agreement states otherwise, profits and losses are to be shared equally among the partners
Indicate whether the statement is true or false
What skills and knowledge do salespeople need to be effective strategic problem solvers?
What will be an ideal response?
Laurie's Lawn Service, Inc., purchases a heavy-duty tri-cut lawn mower on March 17, 2019, for $5,500. Under a special election, Laurie's expenses the $5,500 cost of the lawn mower in 2019. In July, a tire on the lawn mower is repaired at a cost of $450. Maintenance costs on the lawn mower for 2019 total $175. What is Laurie's basis in the lawn mower at the end of 2019?
A. $- 0 - B. $450 C. $5,500 D. $5,950 E. $6,125