Allyn Company Purchased Equipment Costing $55,000 on January 1,Year 1

Allyn Company purchased equipment costing $55,000 on January 1,Year 1.The equipment is estimated to have a salvage value of $5,000 and an estimated useful life of 5 years.Straight-line depreciation is used,and all depreciation has been recorded as of December 31,Year 4.If the equipment is sold on December 31,Year 4 for $20,000,the journal entry to record the sale is:

A) Debit Cash,$20,000; Debit Accumulated Depreciation,$40,000; Credit Equipment,$55,000,Credit Gain on Sale,$5,000.
B) Debit Cash,$20,000; Debit Depreciation Expense,$40,000; Credit Equipment,$55,000,Credit Gain on Sale,$5,000.
C) Debit Cash,$20,000; Credit Equipment,$15,000,Credit Gain on Sale,$5,000.
D) Debit Cash,$20,000; Debit Accumulated Depreciation,$35,000; Credit Equipment,$55,000.
E) Debit Cash,$20,000; Debit Loss on Sale,$35,000; Credit Equipment,$55,000.