Equipment with an Estimated Residual Value of $15,000 at Acquisition

Equipment with an estimated residual value of $15,000 at acquisition was sold on December 31,Year 1,for $20,000 cash.The following information was available at the time of sale: acquisition cost,$100,000; accumulated depreciated on December 31,Year 1,after adjustment,$85,000.When this transaction is recorded,which of the following should be included?

A) a debit of $80,000 to the loss on disposal account
B) a credit of $20,000 to the equipment account
C) a credit of $5,000 to the gain on disposal account
D) a debit of $20,000 to the accumulated depreciation account