An asset was acquired on August 1, 2021, for $42,000 with an estimated five-year life and $2,100 residual value. The company uses straight-line depreciation. Calculate the gain or loss if the asset was sold on April 30, 2023, for $24,000. Partial-year depreciation is calculated based on the number of months the asset is in service.

Multiple Choice

• $5,985 gain.

• $4,035 loss.

• $11,970 gain.

• $7,980 loss.