Complex Transactions, Acquisitions and Dispositions of Long-Term Assets. During the year, Big Ben Corporation sold equipment for $2,000. The equipment’s cost was $25,000 and accumulated depreciation...

Complex Transactions, Acquisitions and Dispositions of Long-Term Assets. During the year, Big Ben Corporation sold equipment for $2,000. The equipment’s cost was $25,000 and accumulated depreciation was $18,000. There were no other transactions conducted during the period. Big Ben also purchased a new building for $44,000 and paid cash. Net income for the year was $53,000.

Required »

a. What is the gain or loss on the sale of equipment?

b. What are the operating and investing cash flows for the company? Use the indirect method.