Question: Equipment costing $ 2 8 1 0 0 0 was destroyed when it caught on fire. At the date of the fire, the accumulated depreciation

Equipment costing $281000 was destroyed when it caught on fire. At the date of the fire, the accumulated depreciation on the
equipment was $142000. An insurance check for $342000 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
gain on disposal of $203000.
credit to the Equipment account of $139000.
gain on disposal of $61000.
credit to the Accumulated Depreciation account for $142000.
Equipment costing $281000 was destroyed when it caught on fire. At

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