On December 25, 20177, Mr Jones gives Charity A 1,000 shares of stock that the bought originally
Question:
On December 25, 20177, Mr Jones gives Charity A 1,000 shares of stock that the bought originally for $9,000. No restrictions were placed on this donation. The governing board does not want speculate on investments. Thus, it has a policy to sell all donated investments as soon as received These 1,000 shares are sold on December 26 ,2017, for their fair value of $28,000 How does the charity report these events on a statement of cash flows?
a. As a $28,000 cash inflow from an investing activity.
b. As a $9,000 cash inflow from an operating activity and a $19,000 cash inflow from an investing activity.
c. As a $28,000 cash inflow from an operating activity.
d. As a $9,000 cash inflow from a financing activity and a $19,000 cash inflow from an investing activity.
Expert Answer:
