The disposal of equipment for an amount of cash greater than the carrying value of the equipment

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The disposal of equipment for an amount of cash greater than the carrying value of the equipment results in a cash receipt equal to the carrying value of the equipment plus the gain on the disposal, which appears in income. How might the accountant treat this transaction in the statement of cash flows? Consider both the direct and indirect methods.

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Financial Accounting an introduction to concepts, methods and uses

ISBN: 978-0324789003

13th Edition

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

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