NEAL Multiple Choice Question 156 A machine costing $170000 was destroyed when it caught fire. At the date of the fire, the accumulated depreciation on the machine was $76500. An insurance check for $214200 was received based on the replacement cost of the machine. The entry to record the insurance proceeds and the disposition of the machine will include a credit to the Equipment account for $137700. gain on disposal of $44200. credit to the Accumulated Depreciation account for $76500. gain on disposal of $120700