On January 1,2017,Petersen Corp.sold a piece of equipment for $3,000 which it had used for several years.The equipment had cost $13,000,and its accumulated depreciation amounted to $9,000 at the time of the sale.What are the net effects on the accounting equation of selling the equipment?

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The equipment's book value was $4,000 ($13,000 cost - $9,000 accumulated depreciation), and it was sold for $3,000, resulting in a loss of $1,000. This loss decreases both assets (due to the cash inflow being less than the equipment's book value) and stockholders' equity (due to the recognition of the loss).