Use the Following Information to Answer the Following Questions

Multiple Choice

Use the following information to answer the following Questions
Carmen Company has an asset that cost $5,000 and currently has accumulated depreciation of $2,000. Suppose the firm sold the asset for $2,500 and is subject to a 30% income tax rate.
-The loss on disposal would be:

A) $350.
B) $500.
C) $650.
D) $2,500.
E) None, because the transaction produced a gain.