Q4

4. The net book value of a truck at the beginning of the year is $30,000. During the year, the company recorded depreciation expense of $10,000 before it sold the truck for $25,000 in cash. Which of the following will be found in the Statement of Cash Flows prepared using the Indirect Method? $10,000 depreciation expense added back to Net Income in Operating Activities section; $5,000 gain on sale in Investing Activities section; Sales proceeds of $20,000 listed in Investing Activities section O $10,000 depreciation expense added back to Net Income in Operating Activities section $5,000 gain on sale added to Net Income in Operating Activities section; Sales proceeds of $25,000 listed in Operating Activities section $10,000 depreciation expense added back to Net Income in Operating Activities section; $20,000 book value of the Truck listed as cost of PP&E sold in Investing Activities section; Sales proceeds of $25,000 listed in Investing Activities section $10,000 depreciation expense added back to Net Income in Operating Activities section; $5,000 gain on sale subtracted from Net Income in Operating Activities section; Sales proceeds of $25,000 listed in Investing Activities