Myers Corporation Exchanged an Old Machine Costing $18,000, with an Accumulated

Multiple Choice

Myers Corporation exchanged an old machine costing $18,000, with an accumulated depreciation of $15,000, and cash of $5,000 for a new machine cash price of $22,000. What is the journal entry?

A) Debit Machinery $20,000; debit Accumulated Depreciation $15,000; credit Machinery $18,000; credit Cash $14,000
B) Debit Machinery $17,000; debit Accumulated Depreciation $15,000; credit Gain on Disposal of Plant Asset $3,000; credit Machinery $18,000; credit Cash $17,000
C) Debit Machinery $22,000; debit Accumulated Depreciation $15,000; credit Machinery $18,000; credit Cash $5,000; credit Gain on Disposal $14,000
D) None of these answers is correct.