On July 1, 2019, Waters Kennels Sells Equipment for $22,000

Multiple Choice

On July 1, 2019, Waters Kennels sells equipment for $22,000. The equipment originally cost $60,000, had an estimated 5-year life and an expected residual value of $10,000. The Accumulated depreciation account had a balance of $35,000 on 1 January, 2019, using the straight-line method. The gain or loss on disposal is:

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