3 pts Question 21 JR & Daughters Ltd is preparing its statement of cash flows using the indirect method. During the year. JR sold equipment for $7,000 cash. The book value of the asset was $5,000. Evaluate the following statements: 1. There was a gain on the sale of this equipment of $2,000 2. The gain on the sale of this equipment will be subtracted from net income in the operating activities section of the Statement of Cash Flows 3. The cash receipt of $7,000 is shown as a positive cash flow in the financing activities section of the Statement of Cash Flows Both Statement #1 and #3 are true Only Statement #3 is true Only Statement #2 is true All of the Statements are false All of the Statements are true Only Statement #1 is true Both Statement #1 and #2 are true Both Statement #2 and #3 are true