Answer: €77,000.

The correct answer is **C** because the cash proceeds from the sale of PP&E are calculated as the sum of the carrying amount and the gain on sale. The carrying amount is the net book value of the asset (historical cost minus accumulated depreciation), adjusted for any impairment or revaluation. Ignoring taxes, the cash inflow from the sale is classified under investing activities. Therefore, the sales proceeds are €75,000 (carrying amount) + €2,000 (gain) = €77,000. This aligns with the principle that the gain or loss on the sale of long-lived assets is derived from the difference between the sales proceeds and the carrying amount.

Author: LeetQuiz Editorial Team