A Company Sells a Long-Lived Asset That Originally Cost $200,000

Multiple Choice

A company sells a long-lived asset that originally cost $200,000 for $50,000 on December 31, 2011. The accumulated depreciation account had a balance of $110,000 after the current year's depreciation of $45,000 had been recorded. The company should recognize a:

A) $100,000 loss on sale.
B) $40,000 gain on sale.
C) $40,000 loss on sale.
D) $25,000 loss on sale.