Final answer:
The entry to record the disposal of a plant asset for cash would include a credit to the Equipment account, a debit to the Accumulated Depreciation account, and potentially a debit or credit to the Gain on Disposal of Plant Assets or Loss on Disposal of Plant Assets account(option a).
Step-by-step explanation:
The entry to record the disposal of a plant asset for cash would include a credit to the Equipment account for the amount the asset was disposed of, in this case, $18,000. The reason for this credit is to reduce the balance of the Equipment account since the asset is no longer owned by the company.
In addition, there would be a debit to the Accumulated Depreciation account for the total amount of depreciation that was recorded until the disposal date, which is not given in the question, so we cannot determine the exact amount of depreciation. However, it is not $60,000.
Finally, there would also potentially be a debit or credit to the Gain on Disposal of Plant Assets or the Loss on Disposal of Plant Assets account. This would depend on whether the cash received from the disposal is more than or less than the asset's carrying value (cost minus accumulated depreciation). If the cash received is more, there would be a credit to the Gain account; if it is less, there would be a debit to the Loss account. The amounts given in the answer choices do not align with the given information, so it is impossible to determine which option is correct without additional information.