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. credit to the Equipment account for $126500. gain on disposal of $114500. gain on disposal of $30500.