Selected accounts from the SFP of Lexy Ltd. at 31 December 20X7 and 20X6 are presented below. During the year, equipment with an original cost of $200,000 and net book value of $85,000 was sold at a loss of $15,000. Other equipment was purchased for cash.

Required:

List the items that would be included in the SCF from these accounts for 20X7. Include the appropriate section (operating, investing, or financing). Use the indirect method of presentation in the operating activities section.

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As at 31 December 20X7 20X6 Equipment $400,000 $230,000 Accumulated depreciation, equipment (170.000) (150,000) 230,000 80,000