Atkins Corporation has provided the following information for the year ended December 31, 2019:

• The equipment account balance increased by $207,000 from the beginning of the year to the end of the year.
• The equipment accumulated depreciation account balance increased by $35,700 from the beginning of the year to the end of the year.
• Equipment costing $51,400 was sold during the year resulting in a $11,050 gain.
• Depreciation expense recorded on the equipment during the year was $66,050.

Which of the following statements is correct with respect to determining cash flow from investing activities? Assume that the equipment purchase and sale resulted in cash flows.

Multiple Choice:

• A $258,400 cash outflow is reported for equipment purchases.

• A $62,450 cash inflow is reported from the equipment sale.

• A $207,000 cash outflow is reported for equipment purchases.

• A $51,400 cash outflow is reported for the equipment sale.