Percy Ltd Has a Piece of Equipment That Has Been

Percy Ltd has a piece of equipment that has been depreciated for 3 years using the declining-balance depreciation method at a rate of 20%.The equipment cost $34 000 and has a salvage value of $4000.At the end of the third year the asset is sold for $24 000.What is the appropriate journal entry to record the disposal in line with the requirements of AASB 116?

A)
$$\begin{array} { | c | l | r | r | } \hline \mathrm { Dr } & \text { Cash at bank } & 24000 & \\\hline \mathrm { Dr } & \text { Accumulated depreciation-equipment } & 18000 & \\\hline \mathrm { Cr } & \text { Equipment } & & 34000 \\\hline \mathrm { Cr } & \text { Gain on sale of equipment } & & 8000 \\\hline\end{array}$$
B)
$$\begin{array} { | l | l | l | l | } \hline \mathrm { Dr } & \text { Cash at bank } & 24000 & \\\hline \mathrm { Cr } & \text { Proceeds from sale of equipment } & & 24000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Loss on disposal of equipment } & 4000 & \\\hline \mathrm { Dr } & \text { Carrying amount of equipment sold } & 15360 & \\\hline \mathrm { Dr } & \text { Accumulated depreciation - machine } & 14640 & \\\hline \mathrm { Cr } & \text { Equipment } & & 34000 \\\hline\end{array}$$
C)
$$\begin{array} { | l | l | l | r | } \hline \mathrm { Dr } & \text { Proceeds from sale of equipment } & 24000 & \\\hline \mathrm { Cr } & \text { Gain on sale of equipment } & & 6592 \\\hline \mathrm { Cr } & \text { Carrying amount of equipment sold } & & 17408 \\\hline\end{array}$$
D)
$$\begin{array} { | c | l | c | c | } \hline \mathrm { Dr } & \text { Cash at bank } & 24000 & \\\hline \mathrm { Dr } & \text { Accumulated depreciation -machine } & 16592 & \\\hline \mathrm { CR } & \text { Gain on sale of equipment } & & 6592 \\\hline \mathrm { Cr } & \text { Equipment } & & 34000 \\\hline\end{array}$$