The T accounts for equipment and accumulated depreciation for Trevis Ltd. are shown here:

In addition, Trevis's income statement reported a $1,500 loss on the disposal of equipment.
(a) What amount was reported on the statement of cash flows as "cash provided by disposal of equipment"?
(b) In what section of the statement of cash flows would this transaction be reported?

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Equipment Accumulated Depreciation-Equipment Beg. bal. 80,000 Disposals 20,000 Disposals 5,500 Beg. bal. 44,500 Depreciation 20,000 59,000 Acquisitions 40,000 End bal 100,000 End bal.