The Sonesta Company sold equipment for cash. The income statement shows a loss on sale of $5,000. The net book value of the asset prior to sale was $24,000. Which of the following statements describes the cash effect of the transaction?
A) Positive cash flow of $29,000 in investing activities
B) Negative cash flow of $19,000 in operating activities
C) Positive cash flow of $19,000 in investing activities
D) Negative cash flow of $14,000 in financing activities
Correct Answer:
Verified
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