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Company XYZ has Equipment with an original cost of $150,000 and accumulated...

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Accounting

Company XYZ has Equipment with an original cost of $150,000 and accumulated depreciation of $90,000. The company sells the equipment for $40,000 cash. Which of the following is the correct journal entry to record the sale?
A) Debit Cash $40,000; Debit Accumulated Depreciation $90,000; Credit Equipment $130,000
B) Debit Cash $40,000; Debit Loss on Sale of Equipment $20,000; Credit Equipment $150,000; Credit Accumulated Depreciation $90,000
C) Debit Cash $40,000; Debit Loss on Sale of Equipment $20,000; Credit Equipment $60,000
D) Debit Cash $40,000; Credit Equipment $60,000; Credit Gain on Sale of Equipment $20,000
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