Madison Company owned an asset that had cost $44,000. The company sold the asset for $16,000. Accumulated depreciation on the day of sale amounted to $32,000. Which of the following statements is true?
A. A $16,000 increase in total assets.
B. A $16,000 cash inflow in the investing activities section of the cash flow statement.
C. A $4,000 cash inflow in the financing activities section of the cash flow statement.
D. A $4,000 gain in the investing activities section of the statement of cash flows.
Answer: B
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