Suppose a firm purchased an asset for \(\$ 50,000\) and depreciated it using straight-line depreciation for its 10 -year useful life, with no salvage value. At the end of the seventh year of use, the firm decided to sell the asset. Proceeds from the sale were \(\$ 17,500\). What was the gain or loss from the sale of the asset? How did the sale affect the statement of cash flows?

a. \(\$ 2,500\) loss; \(\$ 2,500\) cash outflow from investing activities

b. \(\$ 32,500\) loss; \(\$ 17,500\) cash inflow from investing activities

c. \(\$ 17,500\) gain; \(\$ 17,500\) cash inflow from investing activities

d. \(\$ 2,500\) gain; \(\$ 17,500\) cash inflow from investing activities