Governance Corporation Uses the Direct Method When Preparing Its Statement

Multiple Choice

Governance Corporation uses the direct method when preparing its statement of cash flows. Governance sold equipment with a carrying amount of $13,000 at a loss of $3,000. The amount to
Be reported on the statement of cash flows under "proceeds from the sale of capital assets" is:

A) $10,000
B) $3,000
C) $13,000
D) $16,000