ABO purchased a truck at the beginning of 2021 for $140,000. They sold the truck at the end of 2022 for $95,000. If the expected useful life of the truck was six years with a residual value of $20,000 and ABO uses straight-line depreciation, which of the following is true regarding the entry to record the sale of the truck?
A) Credit Gain $5,000.
B) Debit Loss $5,000.
C) Credit Accumulated Depreciation $40,000.
D) Credit Equipment $100,000.
Answer: B
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