Oregon Adventures purchased equipment for $80,000. They sold the equipment at the end of

three years for $45,000. If the expected useful life of the equipment was seven years with a

residual value of $10,000, and they use straight-line depreciation, which of the following is true

regarding the entry to record the sale of the equipment?

A. Debit Loss $5,000.

B. Credit Gain $5,000.

C. Credit Accumulated Depreciation $40,000