Equipment Costing $210,000 Was Destroyed When It Caught on Fire

Multiple Choice

Equipment costing $210,000 was destroyed when it caught on fire. At the date of the fire, the accumulated depreciation on the equipment was $84,000. An insurance check for $240,000 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 $30,000.
B) credit to the Equipment account of $126,000.
C) credit to the Accumulated Depreciation account for $84,000.
D) gain on disposal of $114,000.