Team Shirts,Inc.sold a piece of equipment for $16,000.The carrying value of the equipment was $17,000.The original cost of the equipment was $25,000.A loss on the sale of $1,000 was reported.The amount of net cash from (or used)for INVESTING activities is ________.

Question

Quizplus · Accepted Answer

The net cash from (or used) for INVESTING activities represents the cash inflows and outflows related to the purchase or sale of long-term assets such as property, plant, and equipment. In this case, Team Shirts, Inc. sold a piece of equipment for $16,000, which represents a cash inflow from investing activities. The carrying value and original cost of the equipment are not relevant for determining the net cash from investing activities. The loss on the sale of $1,000 is reported on the income statement and does not affect the cash flow statement. Therefore, the correct answer is A) $16,000, which represents the cash inflow from the sale of the equipment.