Multiple choice question with clear explanation. Thanks.

The Delivery Vehicles account in the ledger of Transit Co. has a balance of $55 000 which is the cost of two second-hand trucks purchased on 1 July 2017. The Accumulated Depreciation - Delivery Vehicles account has a balance on 30 June 2020, before adjusting entries, of $20 000. No additional delivery trucks have been acquired or sold. The residual value of each truck is estimated to be $2500 and the straight-line depreciation method is used. What is the necessary adjusting entry to record annual depreciation on 30 June 2020? DR Depreciation expense $5 000; CR Delivery vehicles $5 000. DR Accumulated depreciation $10 000; CR Delivery vehicles $10 000. DR Depreciation expense $5 000; CR Cash at bank $5 000. O DR Depreciation expense $10 000; CR Accumulated depreciation $10 000. The balance sheet of Foster Ltd at 31 December 2019 showed: $ Equipment 60 000 Accumulated depreciation of equipment 44 000 16 000 On 1 January 2020 the equipment was sold for $18 000. What is the accounting entry to record the receipt of the proceeds from the sale of the equipment? DR Bank $18 000; CR Equipment $18 000. DR Bank $2000; CR Proceeds from sale of equipment $2000. DR Bank $18 000; CR Proceeds from sale of equipment $18 000. DR Bank $16 000; CR Proceeds from sale of equipment $16 000