medium · Principles of Finance financial-statements-markets-wc
A company sells a piece of equipment for $50,000 cash. The equipment had a book value (Net PP&E) of $40,000.
How does this 'Investing Activity' flow through the Income Statement?
- The $40,000 book value is reported as an expense
- A gain of $10,000 is reported
- The full $50,000 is reported as Revenue
- There is no income statement effect, as it is an investing activity
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