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Required 1 Required 2 Using the direct method, convert the company's Income statement to a cash basis. {Adjustment amounts that are to be deducted sheuld be Indicated with a minus sign.) Adjustments to a cash basis: D Adjustments to a cash basis: _ 0 Selling and administrative expenses _ Adjustments to a cash basis: 0 Adjustments to a cash basis: u $ 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that during Year 2 Wiley had a $10,000 gain on sale of investments and a $7,000 loss on the sale of equipment. Would these transactions affect the computation in (1) above? No, gains and losses on income statement are ignored under direct method. ONo, gains and losses on income statement are considered under direct method. OYes, gains and losses on income statement are ignored under direct method. OYes, gains and losses on income statement are considered under direct method