A corporation paid $210,000 for a machine four years ago. This year, the machine was completely destroyed in a fire. The accumulated depreciation on the equipment is $84,000; that amount includes depreciation for the current year. An insurance check for $240,000 was received based on the replacement cost of the equipment. No journal entry for the casualty was recorded until the company received the check from the insurance company. The companys journal-entry to record the insurance proceeds will include a

Group of answer choices

a. credit to the Accumulated Depreciation account for $84,000.

b. gain on disposal of $30,000.

c. credit to the Equipment account of $126,000.

d. gain on the disposal of $90,000.

e. gain on disposal of $114,000.