Equipment with a book value of $8,000 is sold for $3,000 cash.The statement of cash flows will report a:

Question

Quizplus · Accepted Answer

The sale of equipment represents an investing activity, as it involves the sale of a long-term asset. Since the equipment was sold for cash, there will be a $3,000 cash inflow reported in the investing activities section of the statement of cash flows. There is no cash inflow or outflow in the operating or financing activities sections related to this transaction.

Equipment with a Book Value of $8,000 Is Sold for $3,000