Question

] How should a gain from the sale of used equipment for cash be reported in a statement of cash flows using the indirect method?

Answer 1

Answer:

A gain from the sale of used equipment for cash should be subtracted from net income

Explanation:

Indirect method make adjustment to reconcile the net income to cash. It depends on the account if it is added or subtracted to net income.

In this case,  a gain from the sale of used equipment for cash is subtracted from net income.