1.A county acquires equipment for $10,000,000 for use for a community project, reported in a special revenue fund. The equipment has a 5-year life, no residual value. After 3 years, the equipment is sold for $1,000,000. Straight-line depreciation is used if appropriate. How is the sale reported in the special revenue fund? Select one: A. Expenditure, $3,000,000 B. Other financing source, $1,000,000 C. Revenue, $1,000,000 D. Loss on sale, $3.000.000