A fixed asset with a cost of $30,000 and accumulated depreciation of $27, 500 is sold for $3, 500. What is the amount of the gain or loss on disposal of the fixed asset? a: $2, 500 loss $1,000 loss $2, 500 gain $1,000 gain On December 31, Reach It Batting Cages Company has decided to trade-in one of its batting cages for another one that has a cost of $500,000. The seller of the batting cage is willing to allow a trade-in amount of $12,000. The initial cost of the old equipment was $225,000 with an accumulated depreciation of $195,000. Depreciation has been taken up to the end of the year. The difference will be paid in cash. What is the amount of the gain or loss on this transaction? a. Loss of $12,000 b. Gain of $12,000 c. Loss of $18,000 d. No loss or gain will be recorded