Bravo Company furnace, which has a current book value of $40,000 (Original Cost less accumulated depreciation), has been destroyed. If the insurance company pays Bravo$45,000 which of the following transactions should be recorded?

A-Debit Cash $45000; Credit Equipment/ Furnace $45000.

B- Debit Cash $40000; debit Equipment/ Furnace $40000.

C-Credit Gain on Disposition of Equipment/ Furnace $45000; Debit cash $45000.

D-debit Equipment/ Furnace $5000; Credit Equipment/ Furnace $40000; debit Cash $45000.

E-Credit Gain on Disposition of Equipment/ Furnace $5000; Credit Equipment/ Furnace $40000; Debit Cash $45000.