Equipment That Cost $420000 and on Which $200000 of Accumulated

Multiple Choice

Equipment that cost $420000 and on which $200000 of accumulated depreciation has been recorded was disposed of for $180000 cash. The entry to record this event would include a

A) gain of $40000.
B) loss of $40000.
C) credit to the Equipment account for $220000.
D) credit to Accumulated Depreciation for $200000.