A company sells a plant asset which originally cost $400,000 for $250,000 on December 31, 2020. The Accumulated Depreciation account had a balance of $165,000 after the current year's depreciation of $25,000 had been recorded. The company should recognize a

a. $15,000 gain on disposal.

b. $15,000 loss on disposal.

c. $40,000 gain on disposal.

d. $40,000 loss on disposal.