A machine costing $$172600$ was destroyed when $it$ caught fire. $At$ the date $of$ the fire, the accumulated depreciation $on$ the

machine was $$82500.An$ insurance check for $$213000$ was received based $on$ the replacement cost $of$ the machine. The entry

$to$ record the insurance proceeds and the disposition $of$ the machine will include $a$

gain $on$ disposal $of$ $$122900.$

gain $on$ disposal $of$ $$40400.$

credit $to$ the Equipment account for $$130500.$

credit $to$ the Accumulated Depreciation account for $$82500.$