Big Lake Company has provided the following long-term assets from its most recent statement of financial position:

Land $1,120,000

Building $365,000

Accumulated depreciation building ($200,000)

Equipment $520,000

Accumulated depreciation equipment ($275,000)

Total property, plant, and equipment $1,530,000

During the current period Big Lake Company sold land and equipment to Small Lake Company for a lump sum amount of $625,000. Assuming that the equipment sold was the only equipment carried by Big Lake and the historical cost of the land is $220,000, what is the total gain or loss from this sale?

a.loss of $120,000

b.gain of $185,000

c.gain of $160,000

d.loss of $275,000