A Machine Costing $176,000 Was Destroyed When It Caught Fire

Multiple Choice

A machine costing $176,000 was destroyed when it caught fire.At the date of the fire, the accumulated depreciation on the machine was $80,000.An insurance check for $200,000 was received based on the replacement cost of the machine.The entry to record the insurance proceeds and the disposition of the machine will include a

A) gain on disposal of $24,000.
B) credit to the Equipment account for $120,000.
C) credit to the Accumulated Depreciation account for $80,000.
D) gain on disposal of $104,000.