Warren Corporation's Balance Sheet Reports Equipment That Originally Cost $65,000 $\quad$

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 Statement $\quad$$\quad$$\quad$ Cash Flows

A) $\text { Gain: } \$ 37,000 \quad \text { Irvesting } + \$ 37,000$
B) $\text { Gain: } \$ 3,000 \quad \text { Operating } - \$ 3,000$
C) $\text { Loss : } \$ 3,000 \quad \text { Operating } - \$ 3,000$
D) $\text { Loss : } \$ 3,000 \quad \text { Irvesting } + \$ 37,000$