The sale of equipment for an amount of cash greater than the book value of the equipment
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The sale of equipment for an amount of cash greater than the book value of the equipment results in a cash receipt equal to the book value of the equipment plus the gain on the sale. Why does the accountant subtract the gain on sale of equipment from net income when computing cash flow from operations?
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Related Book For 
Financial Accounting An Introduction To Concepts Methods And Uses
ISBN: 9780324183511
10th Edition
Authors: Clyde P. Stickney, Roman L. Weil
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