If a gain of $70,000 is incurred in selling equipment having a book value of $225,000,cash flow will increase:
A)$295,000.
B)$155,000.
C)$70,000.
D)some other number.

Name: If a gain of $70,000 is incurred in selling equipment having a book value of $225,000,cash flow will increase: A)$295,000. B)$155,000. C)$70,000. D)some other number.
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Question

Quizplus · Accepted Answer

The cash flow increases by the total cash received from the sale, which is the book value plus the gain: $225,000 + $70,000 = $295,000.

If a Gain of $70,000 Is Incurred in Selling Equipment