A piece of equipment purchased on January 1, 2015 for $15,000 has a residual value of $3,000 and an estimated useful life of 6 years. The asset was depreciated straight-line for two years, then sold on January 1, 2017 for $9,000. What is the amount of the gain or loss that should be recorded.

A) $3,000 loss

B) $3,000 gain

C) $2,000 loss

D) $4,000 loss

A company retires a $70 million bond issue when the carrying value of the bonds is $65 million, but the market value of the bonds is $74 million. Z company will record the retirement as:

A) A debit of $9 million to Loss due to early extinguishment.

B) A credit of $9 million to Gain due to early extinguishment.

C) A debit to Cash for $74 million.