Lighting Company Sold an Old Machine on December 31, 2011

Multiple Choice

Lighting Company sold an old machine on December 31, 2011, for $22,000 cash. The following data was available when the truck sold: When this transaction is recorded, it should include:

A) debit of $7,000 to the loss on disposal account.
B) credit of $22,000 to the truck account.
C) credit of $7,000 to the gain on disposal account.
D) credit of $15,000 to the gain on disposal account.