A company bought $1,000,000 of equipment with an expected life of 25 years and no residual value. After 21 years the company sold the equipment for $122,500. I 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? Multiple Choice $122.500 is recorded as a cash infow from investing activities and $37.500 subtracted to convert net income to net cash flow provided by operating activities $122.500 is recorded as a cash intow from operating activities $122.500 is recorded as a cash infow from investing activities and no other sections of the statement are affected, $122.500 is recorded as a cow from investigates and 58.500 s added to convert not come to net cash flow provided by posting activities