Oregon Adventures purchased equipment for $80,000. They sold the equipment at the end of three years for $45,000. If the expected useful 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.
Answer: A
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