During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the companys accounting records: From the Income Statement Depreciation expense $ 920 Loss on sale of equipment 2,900 From the Balance Sheet Beginning equipment 20,600 Ending equipment 10,200 Beginning accumulated depreciation 1,990 Ending accumulated depreciation 1,770 No new equipment was bought during the period. Required: 1. For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale. (Use the equipment and accumulated depreciation T-accounts to infer the book value of the equipment sold.)

For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale. (Use the equipment and accumulated depreciation T-accounts to infer the book value of the equipment sold.)

Cost of Equipment....

Accumulated Depreciation....

Cash received from sale....

2. Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Operating Activities? (Input the amount as positive value.)

3. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing Activities? (Input the amount as positive value.)