During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the company's accounting records:

From the Income Statement

Depreciation expense$1,010

Loss on sale of equipment3,800

From the Balance SheetBeginning equipment20,400

Ending equipment11,400

Beginning accumulated depreciation1,860

Ending accumulated depreciation1,810

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.)

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?

3.What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing Activities?