A company had a broken printer which they deemed was not worth fixing and thus discarded it. The original cost of the printer was 7,500 and the accumulated depreciation at the time of disposal was6,000. Which of the following would be included in the correct journal entry to record the disposal of the printer?
1) A credit to the Loss on Disposal account for $1,500
2) A debit to the Equipment account for $7,000
3) A credit to the Accumulated Depreciation account of $6,500
4) A debit to the Loss on Disposal account for $1,500
5) A credit to the Gain on Disposal account for $1,500