Lorray Inc. reported Equipment on January 1 of $430,000 and on December 31 of $392,000. The company also reported Accumulated Depreciation on January 1 of $280,000 and December 31 of $313,000. During the year, the company sold equipment with an original cost of $80,000 and a carrying value of $60,000, resulting in a loss of $5,000.

What would be shown in the investing activities section for the year based upon this information?

Select one:

a. Cash inflow for the sale of equipment of $65,000 and a cash outflow for equipment purchases of $42,000.

b. Cash inflow for the sale of equipment of $55,000 and a cash outflow for equipment purchases of $42,000.

c. Cash inflow for the sale of equipment of $55,000, a cash outflow for equipment purchases of $42,000, and add back the loss of $5,000.

d. Cash inflow for the sale of equipment of $55,000 and a cash outflow for equipment purchases of $22,000.