Martinez Owns Machinery That Cost $87,000 with Accumulated Depreciation of $40,000

Martinez owns machinery that cost $87,000 with accumulated depreciation of $40,000. The company sells the machinery for cash of $42,000. The journal entry to record the sale would include a:

A) Credit to Accumulated Depreciation of $40,000.
B) Credit to Gain on Sale of $2,000.
C) Credit to Machinery of $47,000.
D) Debit to Cash of $42,000.
E) Debit to Accumulated Depreciation of $47,000.

Correct Answer:

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