Marcus Ltd. sold equipment during calendar 2020 for $28,500 cash. The original cost of the equipment was $69,000, and the accumulated depreciation to the date of sale was $36,750. This transaction should be shown on Marcus’ 2020 statement of cash flows (indirect method) as a(n)

addition to net income of $3,750 and a $28,500 cash inflow from investing activities.

deduction from net income of $3,750 and a $32,250 cash inflow from investing activities.

addition to net income of $3,750 and a $28,500 cash inflow from financing activities.

deduction from net income of $3,750 and a $28,500 cash inflow from investing activities.

Answer rating: 100% (QA)

The correct option is deduction from net income of 3750 an... View the full answer