Final answer:
The total amount reported in the cash flows from investing activities section on the statement of cash flows is $68,889, which includes the book value of the sold office equipment and the gain realized from the sale.
Step-by-step explanation:
The correct answer is option a. $68,889. When calculating cash flows from investing activities, we must consider the amount of cash received from the sale. The gain on the sale of the office equipment is not the cash received; instead, it is the difference between the selling price and the book value of the equipment.
To find the total cash received (and thus the total amount reported in the investing activities), we add the gain to the book value. Starting with the book value of the office equipment, which is $61,374, and adding the gain of $7,515, the total cash flow from this transaction is $61,374 + $7,515, which equals $68,889.
The total amount reported in the cash flows from investing activities section of the statement of cash flows is equal to the gain realized from selling the office equipment.
In this case, the gain is $7,515, which is the difference between the selling price ($61,374) and the book value ($61,374 - $7,515 = $53,859). Therefore, the total amount reported in the cash flows from investing activities section is $7,515.