An Asset Was Acquired on August 1, 2018, for $22,000

Multiple Choice

An asset was acquired on August 1, 2018, for $22,000 with an estimated 5-year life and $2,000 residual value. The company uses straight-line depreciation. Calculate the gain or loss if the asset was sold on April 30, 2020, for $13,000. Partial-year depreciation is calculated based on the number of months the asset is in service.

A) $3,000 gain.
B) $2,000 loss.
C) $6,000 gain.
D) $4,000 loss.