On July 1, 2012, Lott Enterprises Sold Equipment with an Original

Multiple Choice

On July 1, 2012, Lott Enterprises sold equipment with an original cost of $95,000 for $50,000. The equipment was purchased January 1, 2011, and was depreciated using the straight-line method assuming a five year useful life and $5,000 salvage value. The necessary entries for 2012 include a:

A) debit to Accumulated Depreciation-Equipment for $18,000.
B) credit to Gain on Sale of Equipment for $18,000.
C) credit to Cash for $50,000.
D) debit to Depreciation Expense for $9,000.