On April 1, 20X4, Michal Company sold equipment for $11,400 cash. The equipment had originally been purchased at a cost of $24,000 on January 1, 20X0. The equipment was expected to a useful life of 8 years with no residual value. As of January 1, 20X4, had accumulated depreciation of $12,000. The entry to record the sale of the equipment was: a)

\begin{array}{|l|r|r|}\hline \text { Cash } & 11,400 & \\\hline \text { Accumulated Depreciation } & 12,750 & \\\hline \text { Gain on Sale of Machine } & & 150 \\\hline \text { Machine } & & 24,000 \\\hline\end{array}

\begin{array}{|l|c|c|}\hline \text { Cash } & 11,400 \\\hline \text { Accumulated Depreciation } & 12,000 \\\hline \text { Loss on Sale of Machine } & 600 \\\hline\text { Machine }&&24,000\\\hline\end{array}

\begin{array}{|l|r|r|}\hline \text { Cash } & 11,400 & \\\hline \text { Depreciation Expense } & 750 & \\\hline \text { Accumulated Depreciation } & 12,000 & \\\hline \text { Gain on Sale of Machine } & & 150 \\\hline \text { Machine } & & 24,000 \\\hline\end{array}

\begin{array}{|l|r|r|}\hline \text { Cash } & 11400 & \\\hline \text { Loss on Sale of Machine } & 600 & \\\hline \text { Machine } & & 12,000 \\\hline\end{array}

A) Choice A
B) Choice B
C) Choice C
D) Choice D

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