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 a year.Before recording the asset sale,the company should debit:

A) depreciation expense for $40,000 and credit long-lived assets 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.