Jeter Company Purchased a New Machine on May 1, 1998

Multiple Choice

Jeter Company purchased a new machine on May 1, 1998 for $176,000.At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of $8,000.The company has recorded monthly depreciation using the straight-line method.On March 1, 2007, the machine was sold for $24,000.What should be the loss recognized from the sale of the machine?

A) $0.
B) $3,600.
C) $8,000.
D) $11,600.