Analyzing Cash Flow Effects of Equipment Sale

Frontier Company sold equipment on June 30, 2020, for $36,000. The equipment had been depreciated $1,800 for the first six months of 2020, contributing to an accumulated depreciation balance of $12,000 on June 30, 2020. The original cost of the equipment was $60,000.

Assuming the indirect method in presenting cash flows from operating activities, indicate any adjustments to net income in the operating activities section and any additions or subtractions in the investing and financing activities sections.

• Note: Indicate a subtraction in the cash flow statement with a negative sign in the Amount column.
• Note: If an item is not included in the cash flow statement, enter a zero in the Amount column and "N/A" in the Cash Flow Section column.

Item	Amount	Cash Flow Section
Depreciation of equipment	Answer	AnswerOperating activities sectionInvesting activities sectionFinancing activities sectionN/A
Loss on sale of equipment	Answer	AnswerOperating activities sectionInvesting activities sectionFinancing activities sectionN/A
Gain on sale of equipment	Answer	AnswerOperating activities sectionInvesting activities sectionFinancing activities sectionN/A
Proceeds from sale of equipment	Answer	AnswerOperating activities sectionInvesting activities sectionFinancing activities sectionN/A