Wildhorse Company purchased equipment on June $1,2022$ for $$1555000.$ At the time of acquisition, the machine was estimated to have a useful life of five years and an estimated salvage value of $$275000.$ The company has depreciated the asset using the straightline method. In May $2025,$ the company decided to cease production of one of its product lines and to dispose of the equipment. On June $1,2025,$ the machine was sold for $$796000.$ The journal entry to record the sale of the machine will include

a debit to Loss on Disposal for $$137000.$

a credit to Accumulated Depreciation $-$ Equipment for $$622000$

a credit to Gain on Disposal for $$9000.$

a credit to Equipment for $$787000.$