Amanda Company purchased a computer that cost $11,600. It had an estimated useful life of four years and a residual value of $1,800. The computer was depreciated by the straight-line method and was sold at the end of the third year of use for $5,760 cash. Which of the following statements correctly describes the computer sale?

Assets decrease $5,760 and stockholders equity is not affected.

Assets and stockholders equity both decrease by $1,510.

Assets and stockholders equity both increase by $5,760.

Assets and stockholders equity both increase by $1,510.