Equipment Costing $280,000 Was Destroyed When It Caught on Fire

Multiple Choice

Equipment costing $280,000 was destroyed when it caught on fire.At the date of the fire, the accumulated depreciation on the equipment was $112,000.An insurance check for $320,000 was received based on the replacement cost of the equipment.The entry to record the insurance proceeds and the disposition of the equipment will include a

A) gain on disposal of $40,000.
B) credit to the Equipment account of $168,000.
C) credit to the Accumulated Depreciation account for $112,000.
D) gain on disposal of $152,000.