10. On January 1, 2016, Rexford Company purchased a drilling machine for $11,500. The machines has an estimated useful life of 4 years and a salvage value of $200. Given this information, if Rexford uses double-declining-balance method of depreciation, and sells the machine on December 31, 2017, for $3,000 cash.

Then how much will be gain or loss on disposal of this asset?

a. $ 2,750 loss

b. $ 1,800 loss

c. $1,562 gain

d. $ 125 gain