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Halliburton exchanged with its shareholders 1356

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Unformatted text preview: ,000 cash. The Cyborg business was carried on Hewitt’s balance sheet as an investment with a book value of $6,753,000 million (inferred from the proceeds less gain). Hewitt’s gain on sale equaled the sale proceeds less the book value: $42,420,000 – 6,753,000 = $35,667,000 gain on sale. Hewitt reports the gain on sale in its 2008 income from continuing operations. Hewitt subtracts the $35,667,000 gain from net income in its statement of cash flows to compute net cash flows from operations since the transaction generated a noncash operating gain (the $42,420,000 cash inflow is reporting under investing activities). Equity Carve Outs: Equi...
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