On June 1, 2023, a small company sold off equipment originally purchased for $25,218,000 for $2,395,900. The book value of the equipment at the time of the sale was $2,522,000. Which of the following adjustments will need to be made to the company's 2023 financial statements because of the sale?

• increase to net income of $126,100
• decrease to current assets of $2,395,900
• increase to cash flow from operations of $126,100
• decrease to PP&E of $22,696,000