During 2014, Lance Chips sold equipment that had an original cost of $143,000 and accumulated depreciation of $110,000, for cash totaling $25,000. Which one of the following is one effect of this transaction on the statement of cash flows if the indirect method is used?
A) An addition to net income in the operating activities section for $25,000
B) An addition to net income of $8,000 in the operating activities section
C) A subtraction of $33,000 in the investing activities section
D) An addition of $8,000 in the investing activities section
Correct Answer:
Verified
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