On January 1, 2015, a company purchased equipment with an annual depreciation expense of $21,000 and no salvage value. On December 31, 2020, the equipment sold at a gain on disposal of $14,000. The Net Book Value of the equipment at the date of disposal was $24,000.

Indicate which of the following statements is true: *

The equipment was sold for $126,000.

The equipment was sold for $38,000.

The equipment was sold for $21,000.

The equipment was sold for $14,000.

None of the above

Accumulated Depreciation balance on December 31, 2020 is: *

$126,000

$38,000

$21,000

$14,000

None of the above

On the date of disposal, the cost of the equipment will be recorded as: *

Debit equipment $24,000

Credit equipment $150,000

Debit equipment $150,000

Credit equipment $24,000

None of the above