A Company Purchased Equipment for $50,000 on January 1,2012

Multiple Choice

A company purchased equipment for $50,000 on January 1,2012.The equipment was sold for $10,000 on December 31,2015.Accumulated Depreciation in the amount of $40,000 had been recorded through that date.How would the company record this transaction?

A) Debit Cash for $10,000,debit Accumulated Depreciation-Equipment for $40,000,and credit Equipment for $50,000.
B) Debit Loss on Disposal of Equipment for $10,000 and credit Equipment for $10,000.
C) Debit Loss on Disposal of Equipment for $40,000 and credit Accumulated Depreciation-Equipment for $40,000.
D) Debit Equipment for $50,000,credit Accumulated Depreciation-Equipment for $40,000,and credit Cash for $10,000.
E) Debit Cash for $50,000,credit Accumulated Depreciation-Equipment for $40,000,and credit Equipment for $10,000.