Lighting Company sold an old machine on 30 June 2018, for $22 000 cash. The following data was available when the machine sold

Acquisition cost $100,000

Estimated residual value at time of acquisition $8000

Accumulated depreciation on 30 June 2018 (after adjustment) $85,000

When this sale transaction is recorded on 30 June 2018, it should include a:

a. Debit of $7 000 to the loss on disposal account

b. credit of $15 000 to the machine account

c. credit of $7 000 to the gain on disposal account

d. credit of $15 000 to the gain on disposal account