A city paid $40,000 for police cars with the expectation that they would have a useful life of 4 years. After 3 years, the city sold the cars for $3,000. How should the city account for the sale in the General Fund? Select one: A. Cash Accumulated depreciation Loss on sale of capital assets Capital Assets-equipment 3,000 30,000 7,000 40,000 B. Cash Accumulated depreciation Other financing use-sale of capital assets Capital Assets-equipment 3,000 30,000 7,000 40,000 O C. Cash Loss on sale of general fixed assets Capital Assets-equipment 3,000 37,000 40,000 D. Cash 3,000 Other financing source-sale of capital assets 3,000