22 NEED HELP ASAP Using the indirect method, if equipment is sold at a gain, the

Question

22 NEED HELP ASAP

Using the indirect method, if equipment is sold at a gain, the

sale proceeds received are deducted in the operating activities section.

amount of the gain is deducted in the operating activities section.

sale proceeds received are added in the operating activities section.

amount of the gain is added in the operating activities section.

sale proceeds received are deducted in the operating activities section.

amount of the gain is deducted in the operating activities section.

sale proceeds received are added in the operating activities section.

amount of the gain is added in the operating activities section.

Explanation / Answer

Q22 Using the indirect method, if equipment is sold at a gain, the amount of the gain is deducted in the operating activities section.

cash received from sale is shown under investing activity in positive sign and Gain on sale of equipment is deducted from net income under operating activities.

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