This question has multiple parts.

Part 1

When a firm spends $1,000 on extraordinary repairs and maintenance, the impact on the accounting equation is to:

a. increase an asset; decrease another asset

b. decrease an asset; decrease owners' equity

c. increase an asset; decrease owners' equity

d. decrease an asset; increase owners' equity

Part 2

During 2018, Smash Co. sold equipment that had cost $187,500 for $98,000. This resulted in a gain of $15,750.

The balance in A/D: Equipment was $740,000 on January 1, 2018 and $710,000 on December 31.

No other equipment was disposed of during 2018.

The effect of the transaction on the accounting equation when the company makes the sale was to:

a. Decrease total assets by $89,500; decrease owners' equity by $89,500

b. Increase total assets by $15,750; increase owners' equity by $15,750

c. Increase total assets by $15,750; decrease owners' equity by $15,750

d. Increase total assets by $89,500; increase owners' equity by $89,500

Part 3

During 2018, Smash Co. sold equipment that had cost $187,500 for $98,000. This resulted in a gain of $15,750.

The balance in A/D: Equipment was $740,000 on January 1, 2018 and $710,000 on December 31.

No other equipment was disposed of during 2018.

Depreciation Expense for 2018 was:

a. $43,750

b. $30,000

c. $75,250

d. $135,250