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Question - During 2020, equipment was sold for $ 15,000. This equipment originally cost $ 24,000 and had a book value of $ 14,000 at the date of sale. Accumulated depreciation for equipment was $ 65,000 at December 31, 2019 and $ 62,000 at December 31, 2020.
Based on the above information show how the sale (including any gain or loss), and the depreciation expense for 2020 would be shown on a statement of cash flows (indirect method). Include your calculations. How would you report it in the cashflow statement?
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