A company had a tractor destroyed by fire. The tractor originally cost $129,000 with accumulated depreciation of $63,600. The proceeds from the insurance company were $24,000. The company should recognize:

Multiple Choice

• A loss of $41,400.

• A gain of $65,400.

• A loss of $65,400.

• A gain of $24,000.

• A gain of $41,400.