Exercise 6-12 Effect of the disposal of plant assets on the financial statements LO 6-5 Un Company sold office equipment with a cost of $37,460 and accumulated depreciation of $33,908 for $5,410. Required a. What is the book value of the asset at the time of sale? Book value $ 3,552 b. What is the amount of gain or loss on the disposal? Gain on sale $ 1,858 c. How would the sale affect net income (increase, decrease, no effect) and by how much? Amount Effect Net income d. How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how much? Amount Effect Amount of total asset e. How would the event affect the statement of cash flows (inflow, outflow, no effect) and in what section? Amount Effect Section Cash flow