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Lemur [1.5K]
3 years ago
11

Equipment which cost $446,000 and had accumulated depreciation of $248,000 was sold for $222,000. This transaction should be sho

wn on the statement of cash flows (indirect method) as a(n):_________
Business
1 answer:
liberstina [14]3 years ago
5 0

Answer and Explanation:

The computation is shown below:

For profit or loss  on the sale of an equipment

Cost  $446,000

Less: accumulate depreciation -$248,000

Book value $198,000

Less: sold value -$222,000

Loss on sale of an equipment -$24,000

This amount would be added to the net income

And, the sale value i.e. $222,000 should be shown in the investing activity in a positive amount

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