An Enterprise Fund Purchases Equipment for $1,000,000

An enterprise fund purchases equipment for $1,000,000. The equipment has a 5-year estimated life, straight-line, no residual value. The equipment is sold for $450,000 after 2 years. How does the enterprise fund report the sale? Dr cash for $450,000, and:

A) Cr equipment, net for $1,000,000, dr loss on sale for $550,000
B) Dr loss on sale of equipment for $150,000, cr equipment, net for $600,000
C) Cr revenues for $450,000
D) Cr proceeds from sale of equipment (other financing source) for $450,000