The Fixed assets account of Cine Creation, Inc, shows (click the icon to view th

Question

The Fixed assets account of Cine Creation, Inc, shows (click the icon to view the T-account) Cine Creation, Inc, sold fixed assets at an $18,000 gain. How much should Cine Creation, Inc, report for the sale? O A. Cash flows from investing aclivities, $18,000 O B. Cash flows from investing activities, S70 000 Data Table C. D. Cash flows from investing activities, $52,000 Cash flows from investing activities, $34.000 Fixed assets, net Beginning balance 102,000 Depreciation expense Purchase- Ending balance 415.000 27.000 392 000 Sale Pnint Done Click to select your answer

Explanation / Answer

Beginning, Fixed Assets = $102,000
Purchase = $392,000
Depreciation Expense = $27,000
Ending Fixed Assets = $415,000

Beginning, Fixed Assets + Purchase - Depreciation Expense - Sale of Fixed Assets = Ending Fixed Assets
$102,000 + $392,000 - $27,000 - Sale of Fixed Assets = $415,000
Sale of Fixed Assets = $52,000

Gain on Sale of Fixed Assets = $18,000

Net Proceed from Sale of Fixed Assets = Sale of Fixed Assets + Gain on Sale of Fixed Assets
Net Proceed from Sale of Fixed Assets = $52,000 + $18,000
Net Proceed from Sale of Fixed Assets = $70,000

So, Cash flows from Investing Activities is $70,000

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