A company purchased land for $80400 cash. The real estate brokers' commission was $5000 and $6700 was spent for demolishing an old building on the land before construction of a new building could start. Proceeds from salvage of the demolished building were $1500. Under the historical cost principle, the cost of land is $80400 $85600 $90600. $92100. A plant asset with a cost of $460000 and accumulated depreciation of $420000 is sold for $87000. What is the amount of the gain or loss on disposal of the plant asset? $87000 gain. $87000 loss. $47000 loss. $47000 gain