An asset is purchased on January 1 for $40,000. It is expected to have a useful life of five years after which it will have an expected salvage value of $5,000. The company uses the straight-line method. If it is sold for $30,000 exactly two years after its purchased, the company will record a:

A) gain of $4,000

B) loss of $6,000

C) gain of $6,000

D) loss of $4,000