Tanya Ltd. purchased equipment in Feb 2016 for $200,000. At the time of the purchase it was estimated that the equipment would have a useful life of fours years with no residual value. In September 2018, the equipment was destroyed in a flood. In Feb 2019, Taya Ltd. received an insurance settlement of $101,500. The company depreciates all equipment on a straight-line bases. Its policy is to record a full month of depreciation in all months that assets are available for use.

Prepare the journal entry to record the derecognition of the asset.