Equipment with a cost of $80,000 and accumulated depreciation of $75,000 is sold for $12,000 cash.
Required:
Part a.Prepare the journal entry to record this transaction.
Part b.Explain how this transaction would be reported on the statement of cash flows prepared using the indirect method.

Question

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The Answer of Equipment with a cost of $80,000 and accumulated depreciation of $75,000 is sold for $12,000 cash.
Required:
Part a.Prepare the journal entry to record this transaction.
Part b.Explain how this transaction would be reported on the statement of cash flows prepared using the indirect method.

Equipment with a Cost of $80,000 and Accumulated Depreciation of $75,000