Diamond In the Dust Ltd.uses the indirect method for the cash flow statement.In 2017,they sold equipment for $8,400 cash.The net book value of the asset prior to sale was $9,000.Which of the following statements is true?
A) The loss on sale of $600 would be added back to net income in the operating activities section.
B) The book value of the assets sold would be shown as a negative cash flow in the investing activities section.
C) The book value of the assets sold would be shown as a negative cash flow in the operating activities section.
D) The loss on sale of $600 would be shown as a positive cash flow in the financing activities section.
Correct Answer:
Verified
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