Smiley Corporation sold equipment costing $74,000 with $65,000 of accumulated depreciation for $10,000 cash. Which of the following journal entries should beprepared?

A.

debit Cash for $10,000, credit Equipment for $9,000 and credit Gain on Sale of Equipment for $1,000

B.

debit Cash for $10,000 and credit Gain on Sale of Equipment for $10,000

C.

debit Accumulated Depreciation Equipment for $65,000 and credit Equipment for $65,000

D.

debit Cash for $10,000, debit Accumulated Depreciation Equipment for $65,000, credit Equipment for $74,000 and credit Gain on Sale of Equipment for $ 1,000