Last year Marmin Company sold equipment with a net book value of $120,000 for $160,000 in cash. This equipment was originally purchased for $230,000. What will be the net effect of this transaction on the net cash provided by investing activities on last year's statement of cash flows?
A) A net deduction of $40,000 from cash.
B) A net addition of $40,000 to cash.
C) A net deduction of $70,000 from cash.
D) A net addition of $70,000 to cash.

Question

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The Answer of Last year Marmin Company sold equipment with a net book value of $120,000 for $160,000 in cash. This equipment was originally purchased for $230,000. What will be the net effect of this transaction on the net cash provided by investing activities on last year's statement of cash flows?
A) A net deduction of $40,000 from cash.
B) A net addition of $40,000 to cash.
C) A net deduction of $70,000 from cash.
D) A net addition of $70,000 to cash.

Last Year Marmin Company Sold Equipment with a Net Book