Silverago Incorporated, an international metals company, reported a loss on the sale of equipment of $2 million in 2010. In addition, the company’s income statement shows depreciation expense of $8 million and the cash flow statement shows capital expenditure of $10 million, all of which was for the purchase of new equipment. Using the following information from the comparative balance sheets, how much cash did the company receive from the equipment sale?

Balance Sheet Item

12/31/2009

12/31/2010

Change

Equipment

$100 million

$105 million

$5 million

Accumulated depreciation-Equipment

$40 million

$46 million

$6 million

A. $1 million

B. $2 million

C. $3 million