Hudson Company purchased $30,000 factory equipment on January 1, 2028. At the end of 2030, the company reported $18,000 of accumulated depreciation which included $6,000 of 2030 depreciation expense. On January 1, 2031, Hudson Company sells the factory equipment for $10,000 cash. Which of the following journal entries would Hudson Company record on January 1, 2031?

Group of answer choices

Debit to Loss on Disposal of Fixed Assets $2,000

Credit to Cash $10,000

Credit to Accumulated Depreciation $18,000

Credit Gain on Disposal of Fixed Assets $2,000

Debit to Equipment $30,000