An asset's book value is $32,400 on January 1, Year 6. The asset is being depreciated $450 per month using the straight-line method. Assuming the asset is sold on July 1, Year 7 for $23,800, the company should record:

Multiple Choice

Neither a gain or loss is recognized on this type of transaction.

A loss on sale of $250.

A gain on sale of $500.

A loss on sale of $500.

A gain on sale of $250.