8. On July 1, 2006, the ABC Co. sold equipment it no longer needed for $100,000. On 12/31/05, the balance in the Equipment Account was $130,000 and the balance in the Accumulated Depreciation account as $40,000. The company uses the straight-line depreciation method, based on an estimated salvage value of $20,000 and estimated life of 11 years. Assuming that the accountant makes all of the necessary journal entries, what was the amount of gain or loss on the sale. Hint: dont forget to consider the additional 6 months of depreciation expense before calculating the gain or loss.

a. Loss of $27,500 b. Gain of $12,500 c. Gain of $15,000