An Asset Was Purchased for $12 000

Multiple Choice

An asset was purchased for $12 000. The asset's estimated useful life was 5 years, and its residual value was $2 000. Straight- line depreciation was used. How much gain or loss is reported if the asset is sold for $4 500 at the end of the third year?

A) $2 000 loss
B) $1 500 gain
C) $1 500 loss
D) No gain or loss