The Following Item Is Found on the Income Statement of a Corporation

question 160

Multiple Choice

The following item is found on the income statement of a corporation: Gain from sale of equipment, $5,000. The equipment sold during the year originally cost $20,000, had accumulated depreciation of $16,000 and was sold for cash. The Statement of Cash Flows should show an inflow of cash from investing activities of:

• A) $1,000.
• B) $4,000.
• C) $5,000.
• D) $9,000.

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