In a statement of cash flows, if used equipment is sold at a
gain, the amount shown as a cash inflow from investing activities
equals the carrying amount of the equipment

(a) The cash inflow from the sale of equipment is the
carrying amount plus the gain. Answers (b) and (c) are incorrect
because the tax attributable to the gain is a cash outflow in the
operating activities section of the statement of cash flows. Note
that when using the indirect method, the gain is deducted from
operating activities, as to not double count the gain.