An asset was acquired on January 1, 2021, for $25,000 with an estimated four-year life and $1,000 residual value. The company uses straight-line depreciation. Calculate the gain or loss if the asset was sold on December 31, 2023, for $7,600.

Multiple Choice

• $600 gain.

• $5,400 loss.

• $1,600 gain.

• $600 loss.