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A loss on the sale of property, plant, and equipment should be __________ in computing cash flow from operating activities.
A. added to net income
B. subtracted from net sales
C. subtracted from net income
Answer: A
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A loss on the sale of a long-lived asset has been subtracted in determining net income.
Because a loss on the sale of a long-lived asset does not represent an operating activity, it must be added to net income to determine cash flow from operating activities.

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