Mix & Match Company sold office equipment with a cost of $48,600 and accumulated depreciation of $33,000 for $28,000 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)?