Loveday Ltd owns all of the shares in Laurel Ltd. Loveday Ltd sells plant to Laurel Ltd for $65,000. On the date of sale, the plant had a cost of $90,000 with an accumulated depreciation of $15,000. Ignore tax effect. Which of the following forms part of the entries necessary to record the elimination of the gain/loss on this transaction for consolidation purposes?

Dr. Gain on disposal $10,000

Dr. Plant $10,000 Cr.

Loss on disposal $10,000 Cr.

Gain on disposal $10,000