Equipment Costing $280000 Was Destroyed When It Caught on Fire

Multiple Choice

Equipment costing $280000 was destroyed when it caught on fire.At the date of the fire the accumulated depreciation on the equipment was $112000.An insurance check for $320000 was received based on the replacement cost of the equipment.Recording the insurance proceeds and the disposition of the equipment will include a(n)

A) gain on disposal of $40000.
B) decrease to Equipment of $168000.
C) increase to Accumulated Depreciation for $112000.
D) gain on disposal of $152000.