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  3. entity l reported net income of $125,000 for the c

Entity L reported net income of $125,000 for the current year and uses the indirect...

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Accounting

Entity L reported net income of $125,000 for the current year and uses the indirect method to report operating activities cash flow. Entity L reported a loss on sale of used equipment of $40,000. Choose the appropriate category on the statement of cash flows to report the loss.

Entity L reported net income of $125,000 for the current year and uses the indirect method to report operating activities cash flow. Entity L reported a loss on sale of used equipment of $40,000. Choose the appropriate category on the statement of cash flows to report the loss.

a. Cash Flows From Operating Activities-Add to Net Income

b. Cash Flows From Operating Activities-Deduct from Net Income

c. Cash Flows From Investing Activities

d. Cash Flows From Financing Activities

e. Non-cash

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