On December 31, 2018, ABC company sold its equipment for cash for $10,000. ABC company had acquired this equipment for $20,000 on January 1, 2016 after paying cash. It estimated a useful life of 4 years and a salvage value of $4,000 to arrive at the deprecation expense for each year. What journal entry would the company make on the day that the disposal of equipment is complete.

A. Debit A/D12,000; Credit cash 10,000; Credit Gain on sale 10,000; Credit Equip 20,000

B. Debit A/D12,000; Debit cash 10,000; Credit Gain on sale 2,000; Credit Equip 20,000

C. Debit A/D 4,000; Credit cash 10,000; Debt Loss on sale 10,000; Credit Equip 20,000

D. Debit A/D12,000; Credit cash 10,000; Credit Gain on sale 10,000; Debit Equip 20,000