Equipment, beginning of year	$	340,000
Equipment, end of year		420,000
Accumulated depreciation, beginning of year		190,000
Accumulated depreciation, end of year		184,000

Equipment with a cost of $20,000 and a book value of $6,000 was sold during the year for cash of $18,000. Additional equipment was purchased during the year for cash. The company uses the indirect method in preparing the statement of cash flows. What is the amount of depreciation expense that will be reported in the operating activities section of the statement?

Multiple Choice

• $8,000

• $22,000

• $14,000

• $20,000