On 1 April 2021 a business bought a machine for $120000 with an estimated residual value of $12000. On 1 July 2022 the machine was disposed of for $100000. Machinery is depreciated at the rate of $20\%$ per annum by means of the straight-line method. Depreciation is worked out for each month of ownership. What entry should be recorded in the provision for depreciation of machinery account for the disposal of the machine?
- A$21600 credit
- B$21600 debit
- C$27000 credit
- D$27000 debit