On January 1, 2013, Morgantown Co $\quad$ 1,000
Accumulated Depreciation $\quad$

On January 1, 2013, Morgantown Co. purchased five machines at a price of $10,000 per machine. Because the estimated life was five years and no salvage value was expected, a group depreciation rate of 20% was used. On January 1, 2015, one of the machines was sold for $5,000. The correct entry to record the sale of the machine is

A) Cash 5,000 Loss on Sale of Machine $\quad$ 1,000
Accumulated Depreciation $\quad$$\quad$ 4,000
Machines $\quad$$\quad$$\quad$ 10,000

B) Cash $\quad$$\quad$$\quad$ 5,000
Machines $\quad$$\quad$$\quad$$\quad$ 5,000

C) Cash $\quad$$\quad$$\quad$ 5,000
Loss on Sale of Machines $\quad$$\quad$ 5,000
Machines $\quad$$\quad$$\quad$ 10,000

D) Cash $\quad$$\quad$ 5,000
Accumulated Depreciation $\quad$$\quad$ 5,000
Machines $\quad$$\quad$$\quad$ 10,000