Ignoring Tax Consequences, How Should the Gain or Loss on Disposal

Multiple Choice

Ignoring tax consequences, how should the gain or loss on disposal of an old machine be treated in an equipment replacement decision?

A) used to defray installation costs of the new machine
B) deducted from the accumulated amortization
C) deducted from the cost of the new machine
D) added to the accumulated amortization (or deducted from the cost) of the old machine
E) It is irrelevant.