medium · Financial Accounting assets
A company sells a delivery truck for $15,000 cash. The truck originally cost $40,000 and had Accumulated Depreciation of $22,000.
How is this transaction adjusted in the Operating section of the Statement of Cash Flows (indirect method)?
- Subtract the $3,000 Gain on Sale from Net Income.
- Add the $15,000 cash proceeds to Net Income.
- Subtract the $18,000 Book Value from Net Income.
- Add back the $3,000 Loss on Sale to Net Income.
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