A company sells a plant asset that originally cost $360,000 for $120,000 on December 31, 2017. The accumulated depreciation account had a balance of $180,000 after the current year's depreciation of $30,000 had been recorded. The company should recognize a

$120,000 gain on disposal.

$40,000 gain on disposal.

$60,000 loss on disposal.

$120,000 loss on disposal.