Assume that Risso Company uses straight-line depreciation. If on January 1, Year 3, Risso Company sells the asset for $10,000, the statement of cash flows would report a

1. $14,000 cash inflow from gain on the sale of the asset in the operating activities section.
2. $9,000 cash inflow from an asset disposal in the financing activities section.
3. $10,000 cash inflow from an asset disposal in the investing activities section.
4. a and c.