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A company bought $ 1 , 1 0 0 , 0 0 0 of equipment with an expected life of 2 7 years and no

A company bought $1,100,000 of equipment with an expected life of 27 years and no residual value. After 23 years the company sold the equipment for $126,500. If the company uses straight-line depreciation and the indirect method is used to determine cash flows from operating activities, which of the following reflects how the sale of the equipment would be reported in the statement of cash flows?
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