Garcia Company Sold Equipment for $50,000 Cash

Garcia Company sold equipment for $50,000 cash. The equipment has cost $80,000 and had accumulated depreciation of $44,000 at the time of the sale. Based on this information alone, select the true statement.

A) Cash flow from investing activities would be less if the sale of equipment is reported on the statement of cash flows under the direct method than if it is reported under the indirect method.
B) Cash flow from investing activities would be greater if the sale of equipment is reported on the statement of cash flows under the direct method than if it is reported under the indirect method.
C) Cash flow from investing activities would be the same regardless of whether the sale of equipment is reported on the statement of cash flows under the direct method or the indirect method.
D) The answer cannot be determined because the amount of the salvage value is unknown.