Question: A truck that originally cost $40,000 was sold for $10,000 cash. Accumulated depreciation up to the date of the sale was $36,000. A $6,000 gain was reported on the income statement. What is the effect on the statement of cash flows?
O Cash inflow of $40,000 from sale of truck in investing; $36,000 depreciation added to cash from operating; gain ignored
O $4,000 added to cash from operating; $6,000 subtracted from cash from operating; $10,000 inflow from sale added to cash from investing
O $4,000 depreciation added to cash from operating; $10,000 added to cash from operating; $40,000 subtracted from cash from financing
O $10,000 increasing cash from investing; $6,000 gain subtracted from cash from operating (net income)