Puget Sound Co. sold marketable securities costing $80,000 for $92,000 cash. In the company’s income statement and statement of cash flows, respectively, this will appear as _____?

Answer: A $12,000 gain and a $92,000 cash receipt.
Explanation
  • Gain Calculation: Selling Price ($92,000) - Cost ($80,000) = $12,000 Gain
  • Cash Flow Statement: Reports the total cash received = $92,000 Cash Receipt
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