In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is: Answer: - deducted from net income. Solution H ello Pal, F irst of all a very nice as well as intersting question from your side. S o now straight to the question, as asked above with all the information available from your side and from mine, the answer is as under: T he amount received, will be deducted from the net income of the company. T hat is all I can say from the above given information by you, hope have solved your problem to some extent. R egards, L okesh. .