On October 1, 20X8, a company has a fire that destroyed equipment that originally cost $160,000 on January 1, 20X4. The equipments yearly depreciation was $13,000. If the insurance proceeds total $124,000, what should the company record? (Ch10)

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	Dr. Cash $124,000; Cr. Gain on disposal of equipment $12,750; Cr. Equipment $111,250
	Dr. Cash $124,000; Dr. Accumulated depreciation $61,750; Cr. Gain on disposal of equipment $25,750; Cr. Equipment $160,000
	Dr. Cash $124,000; Dr. Accumulated depreciation $48,750; Cr. Gain on disposal of equipment $12,750; Cr. Equipment $160,000
	Dr. Cash $124,000; Dr. Accumulated depreciation $48,750; Cr. Gain on disposal of equipment $16,000; Cr. Equipment $160,000