B is corrent. Per ASC Topic 230, the cash inflow from the sale of equipment is equal to the cash received from the sale. If a loss occurs, then the cash inflow is equal to the carrying value of the equipment less the loss.
A is incorrect. Income taxes paid to the government are included in cash outflows from operating activities. The income tax effect of the loss on sale of equipment is not included in cash flows from investing activities.
A is incorrect. Income taxes paid to the government are included in cash outflows from operating activities. The income tax effect of the loss on sale of equipment is not included in cash flows from investing activities.
D is incorrect. The cash inflow from equipment sold at a loss is not equal to the carrying amount of the equipment.
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