A Company Sells a Plant Asset That Originally Cost $240,000

Multiple Choice

A company sells a plant asset that originally cost $240,000 for $80,000 on December 31, 2014. The accumulated depreciation account had a balance of $120,000 after the current year's depreciation of $20,000 had been recorded. The company should recognize a

A) $40,000 loss on disposal.
B) $40,000 gain on disposal.
C) $80,000 loss on disposal.
D) $80,000 gain on disposal.