Gilbert’s business sells a non-current asset for cash proceeds of £1300. The asset originally cost £20 700, and accumulated depreciation at the point of sale was £ XXXXXXXXXXThree of the following six...

Gilbert’s business sells a non-current asset for cash proceeds of £1300. The asset originally cost £20 700, and accumulated depreciation at the point of sale was £18 210. Three of the following six statements are correct:

1 Profits increase by £1190.

2 Profits decrease by £1190.

3 Cash increases by £1300.

4 Cash increases by £1190.

5 The net book value of non-current assets decreases by £2490.

6 The net book value of non-current assets decreases by £1300.

Which statements are correct?

a) 1, 3 and 6

b) 2, 3 and 5

c) 1, 4 and 5

d) 2, 4 and 6.