On July 1, 2021, Fleming Company Sells Machinery for $240,000

Multiple Choice

On July 1, 2021, Fleming Company sells machinery for $240,000.The machinery originally cost $600,000, had an estimated 5-year life and an expected salvage value of $100,000.The Accumulated Depreciation account had a balance of $350,000 on January 1, 2021 using the straight-line method.The gain or loss on disposal is

A) $40,000 gain.
B) $10,000 loss.
C) $20,000 loss.
D) $10,000 gain.