A Company Sells a Piece of Equipment Half-Way Through the Accounting

Multiple Choice

A company sells a piece of equipment half-way through the accounting period.The straight-line rate of depreciation on the equipment is $40,000 per year.Before preparing the entry to record the sale of the equipment,the company should first debit:

A) Depreciation Expense for $40,000 and credit Accumulated Depreciation for $40,000.
B) Accumulated Depreciation for $40,000 and credit Cash for $40,000.
C) Depreciation Expense for $20,000 and credit Accumulated Depreciation for $20,000.
D) Cash for $20,000 and credit Depreciation Expense for $20,000.