Brief Exercise $6-5($Algo$)$ Effect of the disposal of plant assets on the financial statements LO $6-5$

Mix & Match Company sold office equipment with a cost of $$60,600$ and accumulated depreciation of $$43,000$ for $$38,000$ cash.

Required:

a$.$ What is the amount of gain or loss on the disposal?

b$.$ How would the sale affect net income $($increase$,$ decrease, no effect$)?$

c$.$ How would the sale affect the amount of total assets shown on the balance sheet $($increase$,$ decrease, no effect$)?$

d$.$ How would the event affect the statement of cash flows $($inflow$,$ outflow, no effect$)?$

Answer is complete but not entirely correct.