Nicklaus Company Has Decided to Sell One of Its Old

Multiple Choice

Nicklaus Company has decided to sell one of its old machines on June 30, 2011.The machine was purchased for $120,000 on January 1, 2007, and was depreciated on a straight-line basis for 10 years with no residual value.If the machine was sold for $39,000, what was the amount of the gain or loss recorded at the time of the sale?

A) $27,000.
B) $81,000.
C) $33,000.
D) $69,000.