If a loss of $25,000 is incurred in selling (for cash) office equipment having a book value of $90,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is: A) $25,000

Business Dec 10, 2020

If a loss of $25,000 is incurred in selling (for cash) office equipment having a book value of $90,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is:

A) $25,000.

B) $90,000.

C) $65,000.

D) $115,000.

Expert Solution

The correct answer to the given question is option C) $65,000.

The cash flows from investing activities is given by:

=Book Value - loss=$90,000−$25,000=$65,000

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