A piece of equipment with a cost of S 11 ,000, a useful life of 5 years, and a salvage value of $ IOOO is depreciated using the

straight-line method. On the first day of the fourth year, the equipment is sold for $4,000. Using this information, compute

the gain or loss on the sale of the equipment.

a. $1000 gain

b. $3000 loss

c. $2000 gain

d. $1000 loss

e. None of these