Chen Company Chen Company Office Equipment Costs $10,000, Has an Expected

Chen Company Chen Company office equipment costs $10,000, has an expected life of four years and a salvage value of $400.The firm has depreciated this asset on a straight-line basis.The firm has recorded depreciation for two years and then sells the equipment at midyear in the third year.
If the Chen Company sells the equipment for $3,000 cash, the entry to record the sale would be as follows:

A) Cash .................................. 3,000
Accumulated Depreciation .................................6,000
Loss on Sale of Equipment .................................1,000
Equipment ......................... ......................10,000
B) Cash ................................................. 3,000
Salvage Value ..................................6,000
Loss on Sale of Equipment ................................1,000
Equipment ............................................10,000
C) Cash ................................................. 3,000
Salvage Value .......................................6,000
Loss on Sale of Equipment ................................1,000
Equipment ............................................10,000
D) Equipment ........................................ 10,000
Cash ................................................ 3,000
Accumulated Depreciation ..................................6,000
Loss on Sale of Equipment ....................................1,000
E) Equipment ....................................... 10,000
Cash ................................................. 3,000
Accumulated Depreciation ................................. ...6,000
Loss on Sale of Equipment ....................................1,000