4) An entity purchases a machine for its factory on 1 July 20x0 for $90,000. It is estimated that the machine has a useful life of 8 years, and straight-line depreciation is used to depreciate the machine. On 1 July 20x2, the entity receives an unexpected offer to exchange the machine for a truck which originally cost $70,000 and has a market value of $20,000. Which of the following journal entries is most appropriate when accounting for the sale of the machine and the receipt of the truck as payment? A: 1 July 20x2 Dr Motor Vehicles 20,000 Dr Loss on Sale 47,500 Dr Acc. Dep. Machinery/Equipment 22,500 Cr Machinery/Equipment 90,000 To record purchase of the truck B: 1 July 20x2 Dr Motor Vehicles 70,000 Dr Acc. Dep. Machinery/Equipment 22,500 Cr Gain on Sale 2,500 Cr Machinery/Equipment 90,000 To record purchase of the truck C: 1 July 20x2 Dr Motor Vehicles 20,000 Dr Loss on Sale 67,500 Cr Machinery/Equipment 90,000 To record purchase of the truck D: 1 July 20x2 Dr Motor Vehicles 70,000 Cr Gain on Sale 2,500 Cr Machinery/Equipment 67,500 To record purchase of the truck E: 1 July 20x2 Dr Motor Vehicles 70,000 Dr Acc. Dep. Motor Vehicles 33,750 Cr Gain in Sale 13,750 Cr Machinery/Equipment 90,000 To record purchase of the truck F: none of the above