Amanda Company purchased a computer that cost $10,800. It had an estimated useful life of three years and a residual value of $1,400. The computer was depreciated by the straight-line method and was sold at the end of the third year of use for $5,170 cash. Which of the following statements correctly describes the computer sale?

Assets and stockholders equity both increase by $5,170.

Assets and stockholders equity both increase by $3,770.

Assets decrease $5,170 and stockholders equity is not affected.

Assets and stockholders equity both decrease by $3,770.