A company had a tractor destroyed by fire. The tractor originally cost $143,000 with accumulated depreciation of $76,200. The proceeds from the insurance company were $38,000. The company should recognize:

Multiple Choice

• A loss of $66,800.

• A gain of $28,800.

• A loss of $28,800.

• A gain of $66,800.

• A gain of $38,000.