Calloway Company acquired an asset on January 1, 2021, for $14,800 with an estimated 10-year life and no residual value is being depreciated in an equipment group asset account that has an average service life of eight years. The asset is sold on December 31, 2022, for $5,400. The entry to record the sale would be:

Multiple Choice

• Cash	$5,400
  Accumulated depreciation	$3,700
  Loss on sale of equipment	$5,700
  Equipment		$14,800

• Cash	$5,400
  Accumulated depreciation	$9,400
  Equipment		$14,800

• Cash	$5,400
  Equipment		$5,400

• Cash	$5,400
  Loss on sale of equipment	$9,400
  Equipment		$14,800