Question: In 2010, a tornado completely destroyed a building belonging to Holland Corp. The building cost $100,000 and had accumulated depreciation of $48,000 at the time

In 2010, a tornado completely destroyed a building belonging to Holland Corp. The building cost $100,000 and had accumulated depreciation of $48,000 at the time of the loss. Holland received a cash settlement from the insurance company and reported an extraordinary loss of $21,000. In Holland’s 2010 cash flow statement, the net change reported in the cash flows from investing activities section should be a

a. $10,000 increase.

b. $21,000 decrease.

c. $31,000 increase.

d. $52,000 decrease.

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