Un Company sold office equipment with a cost of $40,250 and accumulated depreciation of $36,170 for $6,120.

Required

a. What is the book value of the asset at the time of sale?

b. What is the amount of gain or loss on the disposal?

c. How would the sale affect net income (increase, decrease, no effect) and by how much?

d. How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and b

e. How would the event affect the statement of cash flows (inflow, outflow, no effect) and in what section?

c. a. Book value b. Gain (loss) on sale Net income would d. Total assets would e. Effect Section by by