Cannon Manufacturing Co. sold equipment that cost $18,000 for $6,000. A gain on sale of $1,000 was recorded. How is the Cash Flows from Operating Activities affected?
A) The gain of $1,000 is added to Net Income.
B) The gain of $1,000 is deducted from Net Income.
C) The $6,000 cash received is deducted from Net Income.
D) The $11,000 accumulated depreciation is added to Net Income.
Correct Answer:
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