An Asset's Book Value Is $18,000 on December 31, Year

Multiple Choice

An asset's book value is $18,000 on December 31, Year 5. The asset has been depreciated at an annual rate of $3,000 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $15,000, the company should record:

A) Neither a gain nor a loss is recognized on this transaction.
B) A loss on sale of $3,000.
C) A gain on sale of $3,000.
D) A loss on sale of $12,000.
E) A gain on sale of $12,000.