An Asset Was Purchased for $36,000

Multiple Choice

An asset was purchased for $36,000.The asset's estimated useful life was five years and its residual value was $10,000.The straight-line method of depreciation was used.Calculate the gain or loss on sale if the asset is sold for $19,000 at the end of the first year.

A) gain of $5900
B) no gain or loss
C) loss of $11,800
D) gain of $11,800