On January 1, 2015, Morgantown Co. purchased five machines at a price of $10,000 per machine. Because the estimated life was five years and no salvage value was expected, a group depreciation rate of 20% was used. On January 1, 2017, one of the machines was sold for $5,000. The correct entry to record the sale of the machine is

Question 1 options:

	Cash 5,000 Loss on Sale of Machine 1,000 Accumulated Depreciation 4,000 Machines 10,000
	Cash 5,000 Machines 5,000
	Cash 5,000 Loss on Sale of Machines 5,000 Machines 10,000
	Cash 5,000 Accumulated Depreciation 5,000 Machines 10,000