On January $1,$ Year $1,$ Bacco Company had a balance of $$64,600$ in its Delivery Equipment account. During Year $1,$ Bacco purchased delivery equipment that cost $$34,500.$ The balance in the Delivery Equipment account on December $31,$ Year $1,$ was $$65,246.$ The Year $1$ income statement reported a gain from the sale of equipment for $$3,700.$ On the date of sale, accumulated depreciation on the equipment sold amounted to $$10,500.$

Required

a$.$ Determine the original cost of the equipment that was sold during Year $1.$

b$.$ Determine the amount of cash flow from the sale of delivery equipment that should be shown in the investing activities section of the Year $1$ statement of cash flows.

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Determine the original cost of the equipment that was sold during Year $1.$

Original cost of the equipment