Equipment was purchased on 1/23/x1 at a cost of $6000; estimated useful life is 5 years with an estimated salvage
value of $600.
If the equipment is sold for $4,620 on 12/31/x3, the journal entry will include a:
A. credit to Equipment $2,850
B. Credit to Equipment $4, 620
C. Credit to Gain on the Sale of Equipment $1,770
D. Both credit to Cash $4,620 and credit to gain on the Sale of Equipment $1,770
E. Both credit to Company $2,850 and credit gain on the Sale of Equipment $1,770