No Harm Corporation sold some of its used equipment with a carrying amount of $52,000 for $47,000. The indirect method statement of cash flows will reflect an addition in the investing
Activities section of:

Question

Quizplus · Accepted Answer

When using the indirect method for the statement of cash flows, the sale of equipment is reflected in the investing activities section at the actual cash received, which is $47,000. The loss of $5,000 ($52,000 carrying amount - $47,000 sale price) is added back to the operating activities section because it is a non-cash expense that reduced net income.

No Harm Corporation Sold Some of Its Used Equipment with a Carrying