Equipment with a Cost of $10,000 and a Book Value

Multiple Choice

Equipment with a cost of $10,000 and a book value of $3,000 was sold during the year for cash of $9,000.Additional equipment was purchased during the year for cash.Use the information above to answer the question below.The company uses the indirect method in preparing the statement of cash flows.What is the amount of depreciation expense that will be reported in the operating activities section of the statement?

A) $4,000
B) $11,000
C) $7,000
D) $10,000