The following information pertains to the next two questions. ABC Company purchased an asset for $42,000 on January 1, 2019. The asset was expected to have a four-year life and a $2,000 salvage value.

12. The amount of depreciation expense for 2019 using double-declining-balance would be

a. $ 10,000.

b. $ 10,500.

c. $ 20,000.

d. $ 21,000.

13. Assume that ABC Company sells the asset described in Question #12 on January 1, 2020. If the company sells the asset for $25,000, the statement of cash flows would report a

a. $17,000 cash outflow from the loss on the sale of the asset in the operating activities section.

b. $17,000 cash outflow from an asset disposal in the investing activities section.

c. $25,000 cash inflow from an asset disposal in the operating activities section.

d. $25,000 cash inflow from an asset disposal in the investing activities section.