A Truck Costing $47,000 Was Destroyed During a Flood

A truck costing $47,000 was destroyed during a flood. At the date of the flood, the accumulated depreciation on the truck was $22,000. An insurance cheque for $35,000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a

A) gain on disposal of $10,000.
B) credit to the Truck account of $12,000.
C) credit to the Accumulated Depreciation account for $22,000.
D) gain on disposal of $25,000.