Carter Company Disposed of an Asset at the End of the Eighth

Multiple Choice

Carter Company disposed of an asset at the end of the eighth year of its estimated life for $10,000 cash.The asset's life was originally estimated to be 10 years.The original cost was $50,000 with an estimated residual value of $5,000.The asset was being depreciated using the straight-line method.What was the gain or loss on the disposal?

A) $1,000 loss.
B) $4,000 loss.
C) $5,500 gain.
D) $10,000 gain.