A machine costing $1,000,000 was destroyed in a flood. At the date of the flood, the accumulated depreciation on the machine was $740,000. An insurance check for $240,000 was received based on the replacement cost of the machine. Recording the insurance proceeds and the disposition of the machine will include ain) Select one O a loss on disposal of equipment of $20,000 b gain on disposal of equipment of $20,000 O c. decrease to equipment of $260,000 Od gain on disposal of equipment of $240,000