In each transaction below, assume that just prior to the disposal of the asset the depreciation has been brought up to date such that the amount of accumulated depreciation is accurate at the point of disposal. b. 1. Sale of Plant Assets - Gain: On 7/1 Year 6 a corporation sells old MACHINERY & EQUIPMENT that cost $120,000 / with ACCUMULATED DEPRECIATION of $72,000/ for $80,000 CASH. / The GAIN account is credited to balance the entry. Phrase Account Category Affect Dr. or Cr. 1st: A L SERE contra + Dr Cr 2nd: A L SERE contra Dr Cr 3rd: A L SE RE contra Dr Cr 4th: AL SER E contra Dr Cr Date Accounts Debit Credit