On January 1, 2018, Lumos Company Purchased a Machine for $70,200

Multiple Choice

On January 1, 2018, Lumos Company purchased a machine for $70,200. Lumos uses straight-line depreciation and estimates an eight-year useful life and an $5,400 salvage value. On December 31, 2021, Lumos sells the machine for $42,000.
In recording this sale, Lumos should reflect:

A) A $4,200 gain
B) A $1,200 loss
C) A $9,600 gain
D) No gain or loss