The Plant assets account of Star Media shows the following:
|
Plant assets, net |
|||
|
Beg |
80,000 |
Depr |
34,000 |
|
Purchase |
428,000 |
|
|
|
End |
432,000 |
Sale |
42,000 |
Star Media sold plant assets at an $11,000 loss. Where on the statement of cash flows should Star Media report the sale of plant assets? How much should the business report for the sale?
a. Financing cash flows—cash receipt of $42,000
b. Investing cash flows—cash receipt of $53,000
c. Investing cash flows—cash receipt of $31,000
d. Investing cash flows—cash receipt of $42,000