Farmer Company sold a piece of equipment for $6,000. The equipment had an original cost of $34,000 and accumulated depreciation of $31,000 at the time of the sale. Which of the following correctly shows the effect of the sale on the elements of the financial statements? Assets=Liab.+StkEquityRev./Gain?Exp.=Net Inc.Stmt of Cash FlowA.3,000 NA 3,0003,000 NA 3,0006,000 OAB.(3,000) NA (3,000)NA 3,000 (3,000)6,000 IAC.3,000 NA 3,0003,000 NA 3,0006,000 IAD.6,000 NA 6,0006,000 NA 6,0006,000 IA

A. Option A
B. Option B
C. Option C
D. Option D


Answer: C

Business

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