Hairbrain Products, Inc. had $595,000 and $550,000, respectively, in its equipment account on January 1 and December 31. During the year, no assets were purchased.

Which of the following is a likely explanation?

Select one:

a. Depreciation expense during the year is $45,000.

b. Equipment with an original cost of $45,000 was sold during the year.

c. Equipment was wrote down to market value during the year to $45,000.

d. Equipment with a book value of $45,000 was sold during the year.