An asset is purchased on January 1 for $48,200. It is expected to have a useful life of four years after which it will have an expected residual value of $6,700. The company uses the straight-line method. If it is sold for $33,400 exactly two years after it is purchased, the company will record a:

loss of $5,950.

loss of $8,850.

gain of $8,850.

gain of $5,950.