Lincoln, Inc. sold a piece of equipment for $150 cash. The equipment was originally purchased for $1,000, accumulated depreciation at the date of sale equaled $800, and the cost to replace the piece of equipment equals $1,200. Which of the following statements is true regarding the disposal of this piece of equipment?

a. the replacement value of $1,200 of the piece of equipment is removed from the accounting records

b. the original cost of $1,000 for the piece of equipment is removed from the accounting records but the accumulated depreciation of $800 remains on the books until the assets is replaced

c. the company would report a loss of $50 on the sale of the piece of equipment on the income statement

d. the company would report a loss of $250 on the sale of the piece of equipment on the income statement