Warren Corporation's balance sheet reports equipment that originally cost $65,000. The accumulated depreciation for the equipment is $24,400. Warren sells the equipment for $36,400. What would the effect be on its income statement and statement of cash flows?Income StatementCash Flows
A.
| Gain: $36,400 | Investing + $36,400 |
B.
| Loss: $40,600 | Operating + $36,400 |
C.
| Loss: $4200 | Investing + $36,400 |
D.
| Gain: $4200 | Operating ? $4200 |
Answer: C
Business
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