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Equipment that cost $420,000 and on which $200,000 of accumulated depreciation has been recorded was disposed of for $180,000 cash. The entry to record this

Equipment that cost $420,000 and on which $200,000 of accumulated depreciation has been recorded was disposed of for $180,000 cash. The entry to record this event would include a

gain of $40,000.

loss of $40,000.

credit to the Equipment account for $220,000.

credit to Accumulated Depreciation for $200,000.

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