Current Attempt $in$ Progress

Equipment costing $$260000$ was destroyed when $it$ caught $on$ fire. $At$ the date $of$ the fire, the accumulated depreciation $on$ the

equipment was $$100000.An$ insurance check for $$300000$ was received based $on$ the replacement cost $of$ the equipment. The entry $to$

record the insurance proceeds and the disposition $of$ the equipment will include $a$

credit $to$ the Equipment account $of$ $$160000.$

credit $to$ the Accumulated Depreciation account for $$100000.$

gain $on$ disposal $of$ $$140000.$

gain $on$ disposal $of$ $$40000.$