1. Equipment with an estimated residual value of $15,000 at acquisition was sold on December 31, Year 1, for $20,000 cash. The following information was available at the time of sale: acquisition cost, $100,000; accumulated depreciated on December 31, Year 1, after adjustment, $85,000. When this transaction is recorded, which of the following should be included?

   	a.	a credit of $20,000 to the equipment account
   	b.	a credit of $5,000 to the gain on the disposal account
   	c.	a debit of $80,000 to the loss on the disposal account
   	d.	a debit of $20,000 to the accumulated depreciation account

Answer rating: 100% (QA)

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