Question: A machine costing $180000 was destroyed when it caught fire. At the date of the fire, the accumulated depreciation on the machine was $84000. An

A machine costing $180000 was destroyed when it caught fire. At the date of the fire, the accumulated depreciation on the machine was $84000. An insurance check for $210500 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

credit to the Accumulated Depreciation account for $84000.

gain on disposal of $114500.

gain on disposal of $30500.

credit to the Equipment account for $126500.

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