Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 30

A long-term investment in bonds with a cost of $500,000 was sold for $600,000 cash. (a) What was the gain or loss on the sale (b) What was the effect of the transaction on cash flows (c) How should the transaction be reported on the statement of cash flows if cash flows from operating activities are reported by the indirect method