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Equipment which cost $213,000 and had accumulated depreciation of $114,000 was s

ID: 2503167 • Letter: E

Question

Equipment which cost $213,000 and had accumulated depreciation of $114,000 was sold for $121,000. This transaction should be shown on the statement of cash flows (indirect method) as a(n)



addition to net income of $22,000 and a $121,000 cash inflow from financing activities.

deduction from net income of $22,000 and a $99,000 cash inflow from investing activities.

deduction from net income of $22,000 and a $121,000 cash inflow from investing activities.

addition to net income of $22,000 and a $99,000 cash inflow from financing activities.



addition to net income of $22,000 and a $121,000 cash inflow from financing activities.



deduction from net income of $22,000 and a $99,000 cash inflow from investing activities.


.

deduction from net income of $22,000 and a $121,000 cash inflow from investing activities.



addition to net income of $22,000 and a $99,000 cash inflow from financing activities.

Explanation / Answer

deduction from net income of $22,000 and a $121,000 cash inflow from investing activities