A Truck Costing $110000 Was Destroyed When Its Engine Caught

Multiple Choice

A truck costing $110000 was destroyed when its engine caught fire. At the date of the fire the accumulated depreciation on the truck was $50000. An insurance check for $125000 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 $15000.
B) credit to the Truck account of $60000.
C) credit to the Accumulated Depreciation account for $50000.
D) Gain on Disposal of $65000.