On January 1, Jim Shorts Corporation issued bonds for $580 million. This bond issue was originally issued at premium. During the same year, $1,500,000 of the bond premium was amortized. On a statement of cash flows prepared using the indirect method, Jim Shorts Corporation should report: O that $1.5 million to be added to net income O An investing activity of $580 million. O A financing activity of $300 million. O that $1.5 million to be deducted from net income

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On January 1, Jim Shorts Corporation issued bonds for $580 million. This bond issue was originally issued at premium. During
the same year, $1,500,000 of the bond premium was amortized. On a statement of cash flows prepared using the indirect
method, Jim Shorts Corporation should report:
O that $1.5 million to be added to net income
O An investing activity of $580 million.
O A financing activity of $300 million.
O that $1.5 million to be deducted from net income
Transcribed Image Text:On January 1, Jim Shorts Corporation issued bonds for $580 million. This bond issue was originally issued at premium. During the same year, $1,500,000 of the bond premium was amortized. On a statement of cash flows prepared using the indirect method, Jim Shorts Corporation should report: O that $1.5 million to be added to net income O An investing activity of $580 million. O A financing activity of $300 million. O that $1.5 million to be deducted from net income
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