Assume a company sold a piece of equipment that had an original cost of $15...
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Accounting
Assume a company sold a piece of equipment that had an original cost of $15 million and accumulated depreciation of $10 million. The cash proceeds from the sale were $8 million and the gain on the sale was $3 million. Which of the following statements is true when the indirect method is used to prepare the operating activities section of the companys statement of cash flows?
a) It will include an adjustment that subtracts $3 million from net income.
b) It will include an adjustment that adds $8 million to net income.
c) it will include an adjustment that subtracts $8 million from net income.
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