Beck Company trades in old equipment for new equipment. The old equipment has a cost of

$ 10 comma 000$10,000

and accumulated depreciation of

$ 9 comma 000$9,000.

Beck Company pays cash of

$ 21 comma 000$21,000.

The fair value of the new equipment is

$ 25 comma 000$25,000.

What is the gain or loss for Beck Company on the exchange of equipment?

A.

$ 1 comma 000$1,000

loss

B.

$ 3 comma 000$3,000

loss

C.

$ 3 comma 000$3,000

gain

D.

$ 1 comma 000$1,000

gain