A company purchased a machine for $200,000. The accumulated depreciation on the machine is now $130,000. The machine is junked. Which journal entry is prepared to record the disposal?
A) debit Loss on Disposal of Machine for $70,000, debit Accumulated Depreciation - Machine $70,000 and credit Machine for $140,000
B) debit Accumulated Depreciation - Machine for $130,000 and credit Machine for $130,000
C) debit Accumulated Depreciation - Machine for $200,000, credit Machine for $130,000 and credit Gain on Disposal of Machine for $70,000
D) debit Loss on Disposal of Machine for $70,000, debit Accumulated Depreciation - Machine for $130,000 and credit Machine for $200,000
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