Oregon Adventures Purchased Equipment at the Beginning of 2012 for $80,000

Oregon Adventures purchased equipment at the beginning of 2012 for $80,000. They sold the equipment at the end of 2014 for $45,000. If the expected life of the equipment was seven years with a residual value of $10,000, and they use straight-line depreciation, which of the following is true regarding the entry to record the sale of the equipment?

A) Debit Loss $5,000.
B) Credit Gain $5,000.
C) Credit Accumulated Depreciation $40,000.
D) Credit Equipment $5,000.