Martinez Owns Machinery That Cost $87,000 with Accumulated Depreciation of $40,000

Multiple Choice

Martinez owns machinery that cost $87,000 with accumulated depreciation of $40,000. The company sells the machinery for cash of $42,000. The journal entry to record the sale would include:

A) A debit to Accumulated Depreciation of $47,000.
B) A credit to Accumulated Depreciation of $40,000.
C) A debit to Cash of $42,000.
D) A credit to Gain on Sale of $2,000.
E) A credit to Machinery of $47,000.