Use the Information Below for Soho Inc During 2017,Soho Inc

Multiple Choice

Use the information below for Soho Inc.for 2017 and 2018 to answer the following question: $\begin{array}{lr}\text { Equipment, December } 31,2017 & \$ 65,000 \\\text { Equipment, December 31,2018 } & 72,000 \\\text { Accumulated depreciation, December 31,2017 } & 39,000 \\\text { Accumulated depreciation, December 31,2018 } & 30,000\end{array}$ During 2017,Soho Inc.sold equipment with a cost of $30,000 and accumulated depreciation of $25,000 for cash.A gain of $3,000 was recognized on the sale of the equipment.This was the only equipment sale during the year.
What amount would be reported as the cash proceeds from the sale of equipment?

A) $2,000
B) $3,000
C) $5,000
D) $8,000