King Edward Company Reported Plant Assets, Net of Accumulated Depreciation

Multiple Choice

King Edward Company reported plant assets, net of accumulated depreciation, on January 1, 2011 at $437,500 and $589,300 on December 31, 2011. The income statement showed depreciation of $39,200. King Edward Company acquired $287,000 of plant assets during the year and reported proceeds from the sale of plant assets of $89,200 for the year. The gain or loss resulting from the sale of plant assets was a:

A) $5,050 gain.
B) $3,400 loss.
C) $6,800 loss.
D) $3,920 loss.