Question: A machine which originally cost $150,000, but with a current Book Value of $78,000 was sold for Cash of $85,000. Which of the following is

A machine which originally cost $150,000, but with a current Book Value of $78,000 was sold for Cash of $85,000.

Which of the following is a true statement regarding how the transaction would be reported on the Statement of Cash Flow?

A Gain of $7,000 from the sale of the machine would be subtracted in the Operating Activites section of the Cash Flow Statement

A Gain of $7,000 from the sale of the machine would be added in the Operating Activites section of the Cash Flow Statement

A Gain of $7,000 from the sale of the machine would be added in the Investing Activites section of the Cash Flow Statement

A Loss of $65,000 from the sale of the machine would be subtracted in the Investing Activites section of the Cash Flow Statement

Not reported on the Statement of Cash Flows

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