Warren Corporation's balance sheet reports equipment that originally cost $65,000. The accumulated depreciation for the equipment is $25,000. Warren sells the equipment for $37,000. What would the effect be on its income statement and statement of cash flows?Income StatementCash Flows
A.
| Loss: $3,000 | Investing + $37,000 |
B.
| Loss: $3,000 | Operating ? $3,000 |
C.
| Gain: $37,000 | Investing + $37,000 |
D.
| Gain: $3,000 | Operating ? $3,000 |
Answer: A
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