Vice Company purchased a diamond drill in 2019. Exactly two years later, the drilling equipment was sold to another company. You have been tasked with entering the correct journal entry for the disposal, given the following information on the date of the disposal:

- Amount received for sale: $80,000

- Accumulated depreciation: $200,000

- Carrying amount: $100,000

Select one:

a.

Dr. Cash 80,000 // Dr. Accumulated Depreciation - Drill Equipment $200,000 // Dr. Loss on Disposal 20,000 // Cr. Drill Equipment $300,000

b.

Dr. Cash 80,000 // Dr. Loss on Disposal 20,000 // Cr. Drill Equipment 100,000

c.

Dr. Cash 80,000 // Dr. Loss on Disposal 120,000 // Dr. Accumulated Depreciation - Drill Equipment 200,000

d.

Dr. Cash 80,000 // Dr. Accumulated Depreciation - Drill Equipment $200,000 // Cr. Gain on Disposal 20,000 // Cr. Drill Equipment $260,000