A Company Sells a Plant Asset That Originally Cost $360,000

Multiple Choice

A company sells a plant asset that originally cost $360,000 for $120,000 on December 31, 2017. The accumulated depreciation account had a balance of $180,000 after the current year's depreciation of $30,000 had been recorded. The company should recognize a

A) $60,000 loss on disposal.
B) $40,000 gain on disposal.
C) $120,000 loss on disposal.
D) $120,000 gain on disposal.