Equipment was acquired on January 1, 2021, for $15,000 with an estimated four-year life and $1,000 residual value. The company uses straight-line depreciation. Record the gain or loss if the equipment was sold on December 31, 2023, for $5,000.

A)

Cash	$5,000
Accumulated Depreciation	$10,500
Equipment		$15,000
Gain		$500

B)

Cash	$5,000
Equipment		$4,500
Gain		$500

C)

Cash	$5,000
Equipment		$3,500
Gain		$1,500

D)

Cash	$5,000
Accumulated Depreciation	$7,000
Loss	$3,000
Equipment		$15,000

Select the answer below that corresponds to your solution above.

Group of answer choices

B

A

D

C