Augusta Company reported that Its bonds with a face value of $62,000 and a carrylng value of $56,000 are retired for $62,000 cash. The amount to be reported under cash flows from financing activities is: Multiple Choice ($68,000) ($6.000) ($62.000) $0; this is an operating activity.

Augusta Company reported that Its bonds with a face value of $62,000 and a carrylng value of $56,000 are retired for $62,000 cash. The amount to be reported under cash flows from financing activities is: Multiple Choice ($68,000) ($6.000) ($62.000) $0; this is an operating activity.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.24MCE

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Concept explainers

Tax Deferred Retirement Benefits

It stands for Simplified Employee Pension Individual Retirement Account. This savings plan is for self-employed persons such as independent contractors, freelancers, entrepreneurs, etc. The tax rules of SEP IRA are the same as traditional IRA. Entrepreneurs can also open SEP IRA accounts for their employees and gain a tax advantage. The employees cannot make contributions to these accounts by themselves however they will be taxed upon withdrawal.

Question

MC Qu. 12-110 Augusta Company reported that its bonds.
Augusta Company reported that Its bonds with a face value of $62,000 and a carrylng value of $56,000 are
retired for $62,000 cash. The amount to be reported under cash flows from financing activitles is:
Multiple Cholce
($68,000)
($6.000)
($62,000)
$0; this is an operating activity.

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