Machinery acquired on January 1, for $120,000 is expected to have a useful life of 6 years or a production capacity of 800,000 units and a residual value of $6,000. The units of production method is used to depreciate the machinery. The machinery is sold for $50,000 cash after 450,000 units had been produced. The journal entry to record the sale will include a:

Machinery acquired on January 1 , for $120,000 is expected to have a useful life of 6 years or a production capacity of 800,000 units and a residual value of $6,000. The units of production method is used to depreciate the machinery. The machinery is sold for $50,000 cash after 450,000 units had been produced. The journal entry to record the sale will include a: Machinery acquired on January 1 , for $120,000 is expected to have a useful life of 6 years or a production capacity of 800,000 units and a residual value of $6,000. The units of production method is used to depreciate the machinery. The machinery is sold for $50,000 cash after 450,000 units had been produced. The journal entry to record the sale will include a: a) Debit to Loss on Disposal for $17,500 b) Credit to Gain on Disposal for $125 c) Credit to Gain on Disposal for $14,125 d) Debit to Loss on Disposal for $5,875