(Evaluating the effect of the sale of a capital asset, LO 6, 8) In 2001 Triangle Corporation purchased a piece of heavy equipment for $300,000. The equipment was estimated to have a ten-year life and it was amortized on a straight-line basis. In 2005 (after four years of amortization was recorded) the equipment was sold for

$140,000 in cash. What journal entry would be made to record the sale of the equipment? How would the sale be reflected in the cash flow statement? Would there be any effect of this transaction on the calculation of cash generated from operations?