equipment with a cost of $80000 was sold for $12000 cash. At the time of the sale, the equipment had been in-service for 15-years. Depreciation was recorded using straight-line depreciation based on an estimated 16-year usefullifeand $0 estimated residual value. What is the gain or loss on this transaction?

How would the gain or less you identified in the previous problem be included in the operating section of the statement cashflows (indirect method)?

No -it would show up in the financing section Yes- it would show up in the operating section as a Deduction from net income Yes- it would show up in the operating section as a ADD Back to net income No- it would be in the investing section