On January 1, 2010, Mulligan Co At the End of the Second Year, Machine B Was

Multiple Choice

On January 1, 2010, Mulligan Co.began using the composite depreciation method.There were three machines to consider, as follows: $\begin{array}{lrrl}&&\text { Residual }\\\text { Assset } &\text { Cost }&\text { Value} &\text { Life }\\\text { A } & \$ 20,000 & \$ 2,000 & 6 \text { years } \\\text { B } & 15,000 & 3,000 & 3 \text { year } \\\text { C } & 5,000 & 1,000 & 4 \text { year }\end{array}$ At the end of the second year, Machine B was sold for $8, 200.In the entry to record the sale, there should be a

A) $1, 200 debit to Gain on Sale of Machine
B) $6, 800 debit to Accumulated Depreciation
C) $6, 800 debit to Loss on Sale of Machine
D) $8, 000 debit to Accumulated Depreciation