Knowledge Check 01 Infinity Corporation purchased equipment with a 10-year useful life and zero residual value for $10,000. At the end of the fifth year, the equipment was destroyed in a fire. If the equipment is not insured the entry to record the retirement of this asset will include Assume the straight-line depreciation method is used. (Select all that apply.) a debit to Accumulated Depreciation for $5.000 a debit to Loss for $5,000 a credit to Equipment for $5,000 a credit to Equipment for $10,000 a debit to Depreciation Expense for $5,000 Knowledge Check 01 Terra Corporation purchased equipment with a 10-year useful life and zero residual value for $100,000. At the end of the fourth year, the equipment is exchanged for new equipment worth $110,000. Terra gets a trade-in allowance of $70,000 on the exchange, with the remaining $40,000 paid in cash. Which of the following is true of the net effect of this transaction? Assume the straight-line depreciation method is used. (Select all that apply.) Assets decrease by $10.000 Assets increase by $10.000 Labilities increase by $10.000 Total stockholders' equity decreases by $10.000 Total stockholders' equity increases by $10,000