AMC Entertainment operates 307 movie theaters in the United States, Canada, and Europe. During fiscal 2008, the company sold its Fandango assets for \(\$ 20,360,000\) cash and recorded a gain on disposal of \(\$ 18,360,000\), which was included in the company's net income of \(\$ 43,445,000\).
Required:
1. Show how the disposal would be reported on the statement of cash flows, using the following format (which assumes the indirect method):

2. Compute the book value of the Fandango assets that were sold.

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(in thousands) Cash flows from operating activities Net income Gain on sale of property Cash flows from investing activities Proceeds from disposition of property $43,445