Equipment was acquired on January 1, 2024, for $15,000 with an estimated four-year life and $1,000 residual value. The company uses straight-line depreciation. Which of the following entries would be used to record the sale of the equipment for $5,000 on December 31, 2026?

Multiple Choice

• Account Title	Debit	Credit
  Cash	$ 5,000
  Equipment		$ 3,500
  Gain		$ 1,500

• Account Title	Debit	Credit
  Cash	$ 5,000
  Equipment		$ 4,500
  Gain		$ 500

• Account Title	Debit	Credit
  Cash	$ 5,000
  Accumulated depreciation	$ 10,500
  Equipment		$ 15,000
  Gain		$ 500

• Account Title	Debit	Credit
  Cash	$ 5,000
  Accumulated depreciation	$ 7,000
  Loss	$ 3,000
  Equipment		$ 15,000