A piece of equipment was purchased on 1/1/19 for $15,000. The equipment had an original estimated useful life of 5 years and estimated salvage value of $1,000. The equipment is depreciated using the straight line method. On 12/31/21 the equipment stopped working and was disposed of. $500 was received for the scrap. Calculate the gain or loss on the equipment on the disposal date.

Question 12 options:

5,500 Loss on Disposal

8,900 Loss on Disposal

6,100 Loss on Disposal

500 Gain on Disposal