Last Year Marmin Company Sold Equipment with a Net Book

Multiple Choice

Last year Marmin Company sold equipment with a net book value of $120,000 for $160,000 in cash. This equipment was originally purchased for $230,000. What will be the net effect of this transaction on the net cash provided by investing activities on last year's statement of cash flows?

A) A net deduction of $40,000 from cash.
B) A net addition of $40,000 to cash.
C) A net deduction of $70,000 from cash.
D) A net addition of $70,000 to cash.