Stan Sells an Item of Machinery for £8000

Multiple Choice

Stan sells an item of machinery for £8000.The machine had cost £17 500 and accumulated depreciation up to the date of sale was £8600.Using the accounting equation, what was the effect of this transaction on Stan's business assets, capital and liabilities?

A) Assets - increase; capital - increases; liabilities - no change.
B) Assets - increase; capital - no change; liabilities - increase.
C) Assets - decrease; capital - decreases; liabilities - no change.
D) Assets - increase; capital - no change; liabilities - decrease.