Naraval Corporation Sold Used Equipment with a Book Value of $31,000

Multiple Choice

Naraval Corporation sold used equipment with a book value of $31,000 for $27,000. The indirect method statement of cash flows will reflect:

A) an addition of $27,000 in the investing activities section and an addition of $4,000 in the operating activities section.
B) an addition of $27,000 in the investing activities section and a deduction of $4,000 in the operating activities section.
C) an addition of $31,000 in the investing activities section and an addition of $4,000 in the operating activities section.
D) an addition of $31,000 in the investing activities section and a deduction of $4,000 in the operating activities section.