6.2 Gilbert’s business sells a non-current asset for cash proceeds of £1,300. The asset originally cost £20,700, and accumulated depreciation at the point of sale was £18,210.

Three of the following six statements are correct:

1) Profits increase by £1,190.

2) Profits decrease by £1,190.

3) Cash increases by £1,300.

4) Cash increases by £1,190.

5) The net book value of non-current assets decreases by £2,490.

6) The net book value of non-current assets decreases by £1,300.

Which statements are correct?

a) 1, 3 and 6

b) 2, 3 and 5

c) 1, 4 and 5

d) 2, 4 and 6