Reference no: EM132812363

Problem 1: Bramble Corp. sold some of its plant assets during 2021. The original cost of the plant assets was $910000 and the accumulated depreciation at date of sale was $849000. The proceeds from the sale of the plant assets were $89500. The information concerning the sale of the plant assets should be shown on Bramble's statement of cash flows (indirect method) for the year ended December 31, 2021, as a(n)

Option 1: addition of $89500 to net income.
Option 2: subtraction from net income of $28500 and a $89500 increase in cash flows from investing activities.
Option 3: subtraction from net income of $28500 and a $61000 increase in cash flows from financing activities.
Option 4: addition to net income of $28500 and a $89500 increase in cash flows from investing activities.