Last year Marymoor Company sold equipment with a net book value of $95,000 for $70,000 in cash. This equipment was originally purchased for $130,000. 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 addition of $25,000 to cash. A net deduction of $25,000 from cash. A net addition of $60,000 to cash. A net deduction of $60,000 from cash.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Last year Marymoor Company sold equipment with a net book value of
$95,000 for $70,000 in cash. This equipment was originally purchased for
$130,000. 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 addition of $25,000 to cash.
O A net deduction of $25,000 from cash.
A net addition of $60,000 to cash.
O A net deduction of $60,000 from cash.
Transcribed Image Text:Last year Marymoor Company sold equipment with a net book value of $95,000 for $70,000 in cash. This equipment was originally purchased for $130,000. 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 addition of $25,000 to cash. O A net deduction of $25,000 from cash. A net addition of $60,000 to cash. O A net deduction of $60,000 from cash.
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