On January 1, 2017, Starch, Inc

Multiple Choice

On January 1, 2017, Starch, Inc. purchased a machine for $120,000. Starch uses straight-line depreciation and estimates a seven-year useful life and a $4,500 salvage value. On December 31, 2023, Starch cannot locate a buyer for the used machine so it is scrapped.
In recording the machine retirement, Starch should reflect:

A) No gain or loss
B) A $ 4,500 gain
C) A $ 4,500 loss
D) A 115,500 loss