MB Replaced a Major Component of Its Plant (Original Cost

MB replaced a major component of its plant (original cost of the component,$12,000 (60 percent depreciated) ,with a new component that cost $17,500 in cash.Therefore,MB should make the following entry: $\begin{array}{c}\begin{array}{|l|}\hline\text{1) Accumulated amortization}\\\hline Plant.\\\hline\text{Gain on disposal}\\\hline Cash\\\hline\end{array}\begin{array}{l|}\hline7,200 \\\hline17,500\\\hline7,200\\\hline17,500\\\hline\end{array}\end{array}$ $\begin{array}{c}\begin{array}{|l|}\hline\text{2) Plant (or accumulated amortization) .}\\\hline Cash.\\\hline\end{array}\begin{array}{l|}\hline17,500\\\hline17,500\\\hline\end{array}\end{array}$ $\begin{array}{c}\begin{array}{|l|}\hline\text{3) Accumulated amortization.}\\\hlinePlant.\\\hline\text{Loss on disposal.}\\\hlineCash.\\\hline\end{array}\begin{array}{|l|}\hline7,200\\\hline5,500 \\\hline 4,800 \\\hline17,500\\\hline\end{array}\end{array}$ $$\begin{array} { | c | r | } \hline \text { 4) Plant } \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots & 17,500 \\\hline \text { Loss on disposal................... } & 12,000 \\\hline \text { Plant } \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots & 12,000 \\\hline \text { Cash } \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots & 17,500\\\hline\end{array}$$

A) Choice 1
B) Choice 2
C) Choice 3
D) Choice 4