Moffett Co. sold equipment that was 3 years old. Moffett Co. had originally estimated its useful life to be 5 years. As a result of recording the sale transaction, shareholders equity decreased. Which one of the following reasons is a probable cause of the decrease?

Moffett Co. sold the equipment for more than the book value of the equipment.

The amount that Moffett Co. received for the sale was less than the equipments cost.

The book value of the equipment sold was unknown at the time of the sale.

The book value of the equipment sold was greater than the selling price.