1) A company sells equipment which cost $100,000 and had accumulated depreciation of $40,000 for a gain of $10,000. How much would be reported as a cash increase for investing activities?

A) $110,000

B) $100,000

C) $70,000

D) $50,000

2) During the year, a company made loan payments totaling $100,000. $70,000 of these payments were for interest, and $30,000 reduced the principal of the loan. How much would be reported as a use of cash for debt financing activities?

A) $0 since the loan payments are investing activities

B) $30,000

C) $70,000

D) $100,000