On May 1, 2018, Sanford Company sold a truck for $25,000 when the book value...
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Accounting
On May 1, 2018, Sanford Company sold a truck for $25,000 when the book value of the truck was $27,000. How would Sanford record the sale of the truck on the Statement of Cash Flows using the Indirect Method?
Truck: a $25,000 cash inflow from investing activities, Loss: $2,000 cash outflow for financing activities.
Truck: a $25,000 cash inflow from financing activities, Loss: a $2,000 cash outflow for investing activities.
Truck: a $25,000 cash inflow from investing activities: Loss: an addition to net income in the operating section
Truck: a $25,000 cash inflow from investing activities: Loss: a deduction from net income in the operating section
None of these answers are correct.
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