Final answer:
The sale of equipment at book value is reported under the Investing Activities section of the statement of cash flows, as this section includes transactions involving long-term assets.
Step-by-step explanation:
The sale of equipment at book value would be reported on a statement of cash flows under Investing Activities. The statement of cash flows is divided into three sections: Operating Activities, Investing Activities, and Financing Activities. The sale of equipment is a type of investment disposal, as it involves the sale of a long-term asset used in the business. Therefore, it is properly categorized under Investing Activities. This section reflects the cash used for and provided by the purchase and sale of long-term investments and property, plant, and equipment (PP&E), including equipment.