An Asset Was Purchased for $12,000

Multiple Choice

An asset was purchased for $12,000.The asset's estimated useful life was 5 years,and its residual value was $2,000.Straight-line depreciation was used.
-How much gain or loss is reported if the asset is sold for $4,500 at the end of the fourth year?

A) $1,500 gain
B) $500 gain
C) No gain or loss
D) $1,500 loss