Mert Textile purchased machinery for $120,000 eight years ago. It was expected to have a useful life of ten years, no salvage value, and was depreciated using the straight-line method. At the end of its eighth year of use, it was retired from service and given to a junk dealer. The entry to record the retirement includes a debit to Equipment for $120,000. credit to Depreciation Expense for $12,000. debit to Loss on Disposal of Plant Assets for $24,000. credit to Accumulated Depreciation-Equipment for $96,000.