If a loss of $80,000 is incurred in selling equipment having a book value of $220,000, cash flow will increase:

Name: If a loss of $80,000 is incurred in selling equipment having a book value of $220,000, cash flow will increase:
Brand: Quizplus
Rating: 4.9 (46 reviews)

Question

Quizplus · Accepted Answer

The cash flow increases by the amount of cash received from the sale of the equipment. If the equipment had a book value of $220,000 and was sold at a loss of $80,000, it means the equipment was sold for $140,000 ($220,000 - $80,000), which is the increase in cash flow.

If a Loss of $80,000 Is Incurred in Selling Equipment