Grace Company sold equipment for 40 000 cash The equipment cost 70 000 and had accumulated depreciation of 44 000 at the time of

Question

Grace Company sold equipment for 40 000 cash The equipment cost 70 000 and had accumulated depreciation of 44 000 at the time of the sale Based on this information alone which of the following statements is true Multiple Choice The net cash flow from Investing activities would be less if the sale of equipment is reported on the statement of cash flows under the direct method than If It is reported under the Indirect method The answer cannot be determined because the amount of the salvage value is unknown The net cash flow from Investing activities would be greater If the sale of equipment is reported on the statement of cash flows under the direct method than If It is reported under the Indirect method The net cash flow from Investing activities would be the same regardless of whether the sale of equipment is reported on the statement of cash flows under the direct method or the Indirect method

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