An Asset's Book Value Is $36,000 on January 1,Year 6

Multiple Choice

An asset's book value is $36,000 on January 1,Year 6.The asset is being depreciated $500 per month using the straight-line method.Assuming the asset is sold on July 1,Year 7 for $25,000,the company should record:

A) Neither a gain or loss is recognized on this type of transaction.
B) A gain on sale of $2,000.
C) A loss on sale of $1,000.
D) A gain on sale of $1,000.
E) A loss on sale of $2,000.