An asset is purchased on January 1 for $49,200. It is expected to have a useful life of four years after which it will have an expected residual value of $6,900. The company uses the straight-line method. If it is sold for $33,800 exactly two years after it is purchased, the company will record a:

gain of $5,750.

gain of $9,650.

loss of $9,650.

loss of $5,750.