Portland Company sold equipment with a book value of $600 for $850 cash. Total depreciation expense for the entire compnay for the year was $500. The beginning and ending balances in the Accumulated Depreciation account are $1,000 and $700 respectively. The beginning and ending balances in teh Equipment account are 3,500 and 3,700 respectively. In the journal entry to record the sale of equipment for $850 cash, which ONE of the following items would appear? Note: no other equipment was sold during the year.

A. Credit to Equipment for 1,400

B. Debit to Accumulated Depreciation for $500

C. Debit to accumulated Depreciation for 300

D. Debit to loss on sale of equipment for 250

E. Debit to equipment for 200

Please give a detailed explanation of your answer please, I am trying to learn it rather than just know. Thanks!