On 16 May 20X4, Z Ltd Sold Equipment to N

On 16 May 20X4, Z Ltd sold equipment to N Ltd for $50 000, this asset having a carrying amount at time of sale of $40 000. The equipment was regarded by Z Ltd as a depreciable non-current asset, being depreciated at 10% p.a. on cost, whereas N Ltd records the machinery as inventory. The asset was sold by N Ltd before 30 June 20X4. The worksheet entry for the year ended 30 June 20X3 would include the following adjustment:

A) Dr Cost of sales 10 000
B) Cr Cost of sales 10 000
C) Dr Inventory 10 000
D) Cr Inventory 10 000.