Changes in the balance sheet accounts at June 30, 20X1 and 20X2 for the Poker Company are presented below:

	Increase
	(Decrease)
Assets
Cash	$	480,000
Accounts receivable		200,000
Inventory		300,000
Long-term investments		200,000
Equipment		(200,000	)
Accumulated depreciation		(60,000	)
Liabilities and Stockholders Equity
Accounts payable	$	(40,000	)
Dividends payable		400,000
Notes payableCurrent		(200,000	)
Notes payableLong-term		400,000
Common stock, $1.00 par		300,000
Additional paid-in capital		100,000
Retained earnings		80,000

Additional Information for 20X2: Net income was $480,000 and dividends of $400,000 were declared. Common stock was issued for cash. A new long-term investment was acquired for $360,000. A long-term investment was sold for $160,000. Equipment that cost $600,000 was sold for $200,000. The book value of those assets was $150,000.

The gain on the sale of equipment for 20X2 is:

Multiple Choice

• $70,000.

• $50,000.

• $100,000.

• $150,000.