The Sonesta Company sold equipment for cash. The income statement shows a gain on sale of $800. The net book value of the asset prior to sale was $4,000. Which of the following statements describes the cash effect of the transaction?
A) Negative cash flow of $4,800 in investing activities
B) Negative cash flow of $3,200 in operating activities
C) Positive cash flow of $4,800 in investing activities
D) Negative cash flow of $800 in financing activities
Correct Answer:
Verified
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