AMC Entertainment operates 380 movie theaters in the United States
AMC Entertainment operates 380 movie theaters in the United States, Canada, and Europe.
During fiscal 2008, the company sold its Fandango assets for $20,360,000 cash and recorded a gain on disposal of $18,360,000, which was included in the company’s net income of $43,445,000.

Required:
1. Show how the disposal would be reported on the statement of cash flows, using the following format (which assumes the indirect method):
(In thousands)
Cash flows from operating activities.
Net income ...... $43,445
Gain on sale of property........
Cash flows from investing activities...
Proceeds from disposition of property..

2. Compute the book value of the Fandango assets that were sold.

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