An asset was sold during the year. The cost of the asset was $64,500. The asset was depreciated for four years, using the straight-line method at 10% per annum. The proceeds from the sale of this asset was $38,700. What was the gain or loss on the asset, if any?

Select one:

a. A gain of disposal of $25,800

b. A loss of disposal of $25,800

c. The company made no gain or loss on this sale

d. That information cannot be determined from the information provided