Remini Company Sells Equipment for $20,000 Cash

Remini Company sells equipment for $20,000 cash. The equipment has a historical cost of $87,000 and accumulated depreciation of $55,000. What is the journal entry to record the sale of the equipment?

A) debit Cash for $20,000 and credit Gain on Sale of Equipment for $20,000
B) debit Cash for $20,000, debit Accumulated Depreciation - Equipment for $55,000 and credit Equipment for $75,000
C) debit Loss on Sale of Equipment for $12,000, debit Cash for $20,000, debit Accumulated Depreciation - Equipment for $55,000 and credit Equipment for $87,000
D) debit Cash for $20,000, debit Accumulated Depreciation - Equipment for $55,000, debit Gain on Sale of Equipment $12,000 and credit Equipment for $87,000