u pun Handalin Corp. sold equipment on December 31, 2016 for $215,000. The equipment originally cost $500,000 and had accumulated depreciation of $135,000 at the end of 2015. Deprecation on the machine during 2016 was $45,000. The salvage value is estimated to be $50,000 and the equipment has six years of useful life left at December 31, 2016. What effect will selling the equipment have on Handalin's 2016 pre- tax income? 1) Selling the equipment will reduce 2016 pre-tax income by $35,000 2) Selling the equipment will increase 2016 pretax income by $35,000. 3) Selling the equipment will increase 2016 pre-tax income by $105,000. 4) Selling the equipment will reduce 2016 pretax income by $105,000. 5) None of these answers are correct