An asset is purchased on January 1 for $42, 200. It is expected to have a useful life of four years after which it will have an expected residual value of $5, 500. The company uses the straight-line method. If it is sold for $31000 exactly two years after it is purchased, the company will record a: loss of $7, 150. loss of $4, 050. gain of $4, 050. gain of $7, 150