L Limited acquired an item of equipment on 1 July 2019 for $105000. The estimated useful life of the equipment at the acquisition date was 5 years and the residual value was $5000. The company sold the equipment on 30 June 2021 for $75000. Assuming the company uses the straight-line depreciation method, what is the journal entry to record the sale?

a.

None of the answer is correct

b.

DR Cash 75000;DR Accumulated Depreciation 20000;Cr Equipment 85000;Cr Gains on sale 10000

c.

DR Cash 75000;DR Accumulated Depreciation 20000;Dr Loss on sale 10000;Cr Equipment 105000;

d.

DR Cash 75000;DR Accumulated Depreciation 40000;Cr Equipment 105000;Cr Gains on sale 10000