Suppose Company X sold a piece of equipment during the year. The equipment had been purchased five years ago for $10,000. At the time of the sale, $5,000 of Depreciation had been recognized against the equipment. Company X received $6,000 from the sale of the equipment. What would be the impact of the sale on the statement of cash flows prepared using the Indirect Method? O The $6,000 would be shown as an increase in the funds in the Investing Section and the $1,000 gain would be shown as a decrease in the Operating Section. The $6,000 would be shown as an increase in the funds in the Investing Section and the $1,000 gain would be shown as an increase in the Operating Section. The $6,000 would be netted against the gain and only $5,000 would be shown as an increase in the Investing Section. No impact on the Operating Section. The $6,000 would be shown as an increase in the Investing Section. No impact on the Operating Section.

Suppose Company X sold a piece of equipment during the year. The equipment had been purchased five years ago for $10,000. At the time of the sale, $5,000 of Depreciation had been recognized against the equipment. Company X received $6,000 from the sale of the equipment. What would be the impact of the sale on the statement of cash flows prepared using the Indirect Method? The $6,000 would be shown as an increase in the funds in the Investing Section and the $1,000 gain would be shown as a decrease in the Operating Section. The $6,000 would be shown as an increase in the funds in the Investing Section and the $1,000 gain would be shown as an increase in the Operating Soction. The $6,000 would be netted against the gain and only $5,000 would be shown as an increase in the Investing Section. No impact on the Operating Section. The $6,000 would be shown as an increase in the Investing Section. No impact on the Operating