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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 70
(Supplement 12A) Determining Cash Flows from the Sale of Property
AMC Entertainment operates 380 movie theaters in the United States, Canada, and Europe. During fiscal 2008, the company sold its Fandango assets for $20,360,000 cash and recorded a gain on disposal of $18,360,000, which was included in the company's net income of $43,445,000.
Required:
1. Show how the disposal would be reported on the statement of cash flows, using the following format (which assumes the indirect method):
2. Compute the book value of the Fandango assets that were sold.
AMC Entertainment operates 380 movie theaters in the United States, Canada, and Europe. During fiscal 2008, the company sold its Fandango assets for $20,360,000 cash and recorded a gain on disposal of $18,360,000, which was included in the company's net income of $43,445,000.
Required:
1. Show how the disposal would be reported on the statement of cash flows, using the following format (which assumes the indirect method):
2. Compute the book value of the Fandango assets that were sold.
Explanation
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1.
The disposal would be repor...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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