Albers Enterprises Uses the Direct Method When Preparing Its Statement

Multiple Choice

Albers Enterprises uses the direct method when preparing its statement of cash flows. Albers sold equipment with a book value of $51,000 at a gain of $7,000. The amount to be reported on the statement of cash flows under "proceeds from the sale of plant assets" is:

A) $44,000.
B) $ 7,000.
C) $58,000.
D) $51,000.