Last year Marks Company sold equipment with a net book value of $135,000 for $110,000 in cash. This equipment was originally purchased for $215,000. What will be the net effect of this transaction on the net cash provided by investing activities on the statement of cash flows? * A net deduction of $105,000 from cash. O A net addition of $105,000 to cash. O A net addition of $25,000 to cash. O A net deduction of $25,000 from cash.

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 28BEB
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Last year Marks Company sold equipment with a net book value of
$135,000 for $110,000 in cash. This equipment was originally purchased
for $215,000. What will be the net effect of this transaction on the net
cash provided by investing activities on the statement of cash flows? *
A net deduction of $105,000 from cash.
O A net addition of $105,000 to cash.
O A net addition of $25,000 to cash.
O A net deduction of $25,000 from cash.
Transcribed Image Text:Last year Marks Company sold equipment with a net book value of $135,000 for $110,000 in cash. This equipment was originally purchased for $215,000. What will be the net effect of this transaction on the net cash provided by investing activities on the statement of cash flows? * A net deduction of $105,000 from cash. O A net addition of $105,000 to cash. O A net addition of $25,000 to cash. O A net deduction of $25,000 from cash.
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