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Please answer asap Tigger Inc. sold an investment with a book (carrying) value of $54,000 for...

Please answer asap

Tigger Inc. sold an investment with a book (carrying) value of $54,000 for a gain of $9,700.

What is the amount of the investing cash inflow (outflow) relating to this transaction?

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Answer #1

In the cash flow statement, when an investment is sold, it is recorded as an inflow under the cash flows from investing activities. The amount at which such inflow is recorded is the amount at which the investment has been sold i.e. the sale proceeds from the sale of the investment.

Accordingly, Tigger Inc would record the investing cash inflow at the following amount:

Investing cash inflow = Carrying value + Gain from sale of investment

=> Investing cash inflow = $54,000 + $9,700 = $63,700

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