Question

Equipment with a historical cost of $70,000 and Accumulated Depreciation of $15,000 is junked. No cash is received upon disposal. Which journal entry is necessary? debit Accumulated Depreciation-Equipment for $15,000 and credit Equipment for $15,000. debit Accumulated Depreciation-Equipment for $15,000, debit Gain on Disposal of Equipment for $55,000 and credit Equipment for $70,000. debit Accumulated Depreciation-Equipment for $70,000 and credit Equipment for $70,000. debit Accumulated Depreciation-Equipment for $15,000, debit Loss on Disposal of Equipment for $55,000 and credit Equipment for $70,000.