Sustainability Enterprises Uses the Direct Method When Preparing Its Statement

Multiple Choice

Sustainability Enterprises uses the direct method when preparing its statement of cash flows.Sustainability sold equipment with a book value of $22,000 at a gain of $5,000.The amount to be reported on the statement of cash flows under "proceeds from the sale of capital assets" is:

A) $27,000
B) $22,000
C) $17,000
D) $5,000