A Truck Costing $154,000 Was Destroyed When Its Engine Caught

Multiple Choice

A truck costing $154,000 was destroyed when its engine caught fire. At the date of the fire, the accumulated depreciation on the truck was $70,000. An insurance check for $175,000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a

A) Gain on Disposal of $21,000.
B) credit to the Truck account of $84,000.
C) credit to the Accumulated Depreciation account for $70,000.
D) Gain on Disposal of $91,000.