On December 31,2010,Stable Company Sold a Piece of Equipment That

Multiple Choice

On December 31,2010,Stable Company sold a piece of equipment that was purchased on January 1,2005.The equipment originally cost $820,000 and has an estimated useful life of eight years.Stable uses the straight-line method of depreciation.What is the gain/loss on the sale of equipment that Stable will recognize if the equipment was sold for $230,000?

A) $230,000 Gain
B) $25,000 Loss
C) $25,000 Gain
D) $73,750 Gain
E) $0; no gain or loss