An asset is purchased on January 1 for $42,700. It is expected to have a useful life of five years after which it will have an expected residual value of $5,600. The company uses the sttraight-line method. If it is sold for $31,200 exactly two years after it is purchased, the company will record a: a. loss of $3,340 b. gain of $3,340 loss of $8,160