On January 1, 2011, XYZ Corporation Sold a Piece of Equipment

Multiple Choice

On January 1, 2011, XYZ Corporation sold a piece of equipment for $30,000 which it had used for several years. The equipment had cost $45,000, and its accumulated depreciation amounted to $20,000 at the time of the sale. What are the net effects on the accounting equation of selling the equipment?

A) Assets and equity increase $30,000
B) Assets decrease and equity increases $5,000.
C) Assets and equity increase $5,000.
D) Assets and equity decrease $5,000.