Martin Company sold equipment for cash. The income statement shows a gain on sale of $920. The net book value of the asset prior to sale was $3,510. Which of the following statements describes the cash effect of the transaction?
A) negative cash flow of $4,430 for financing activities
B) negative cash flow of $2,590 for operating activities
C) positive cash flow of $4,430 from investing activities
D) positive cash flow of $2,590 from investing activities
Correct Answer:
Verified
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