Use the Information Above to Answer the Following Question

Multiple Choice

Use the information above to answer the following question.Assume the company decides to sell the computer system on July 1,2017 for $1,000,000.Which of the following statements about the journal entry (or entries) required on July 1 is not correct?

A) The depreciation expense must be recorded for 6 months, January 1 to July 1.
B) The Equipment asset account must be credited for $1,600,000 to record the sale.
C) Accumulated Depreciation is debited for $612,500 in the entry to record the sale.
D) The loss on the sale is $12,500.