In each transaction below, assume that just prior to the disposal of the asset the depreciation has been brought up to date such that the amount of accumulated depreciation is accurate at the point of disposal. b. 1. Sale of Plant Assets - Gain: On 7/1 Year 6 a corporation sells old MACHINERY & EQUIPMENT that cost $120,000/ with ACCUMULATED DEPRECIATION of $72,000 / for $80,000 CASH. / The GAIN account is credited to balance the entry. Phrase Account Category Affect Dr. or Cr. 1st: AL SE RE contra + Dr Cr 2nd: AL SE RE contra + Dr Cr 3rd: AL SE RE contra + Dr Cr 4th: AL SE RE contra + Dr Cr Date Accounts Debit Credit