The T accounts for equipment and the related accumulated depreciation for Trevis Corporation are as follows:

In addition, Trevis's income statement reported a loss on the sale of equipment of $1,500.
(a) What will be reported on the cash flow statement with regard to the sale of equipment if Trevis uses the indirect method?
(b) If Trevis uses the direct method?

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Equipment Accumulated Depreciation-Equipment Beg. Ba 80,000 Purchases 41,600Disposals 24,000 Disposals 5,500 Depreciation 12,000 End. Bal. 97,600 Beg. bal. 44,500 End. bal. 51,000