1. Philly Enterprises upgraded its manufacturing operations in June 2019. Given the significant changes in technology related to the upgrade, several pieces of equipment purchased July 1, 2012, could no longer be used. The equipment had a book value of $65,000 (original cost of $200,000) on December 31, 2019, and was being depreciated (straight-line) over 10 years, assuming a zero residual value. The company put the equipment up for sale on July 1 at a fair value price of $25,000. Costs to sell the equipment were estimated at $5,000. The equipment met all the criteria for treatment as an asset held for sale as of July 1, 2020. On October 31, 2020, one of the production managers located a potential market for the equipment in a nearby state. The going price for equipment similar to the equipment owned by Philly was $80,000. Additional transportation costs would increase the cost to sell the equipment to $10,000 total What was the carrying value of the equipment on July 31, 2020, and December 31, 2020, respectively? A) $25,000; $80,000 B) $20,000; $70,000 C) $25,000: $65,000 D) $20,000: $55,000