Refer to the Information Above

Multiple Choice

Refer to the information above. In the year 2015, Tilton Products sells this machinery for $4,500. At the date of sale, the machinery had been depreciated by Tilton Products to its estimated residual value of $8,000. This sale results in:

A) A $3,500 loss in both the company's financial statements and income tax return.
B) No gain or loss in either the financial statements or income tax return.
C) A $3,500 loss in the financial statements, a $3,500 gain in the income tax return.
D) A $3,500 loss in the financial statements, but no gain or loss in the income tax return.